Bill S-238 explained in plain English
An Act to enact the Climate-Aligned Finance Act and to make related amendments to other Acts
Federal Parliament bill summary, status, timeline, sponsor, votes, and official sources.
At a glance
Official Parliament of Canada snapshot for 45th Parliament, 1st Session. MP vote breakdowns appear when the House of Commons publishes a recorded division export for that bill. Senate and House stage details include official debate/sitting links when LEGISinfo publishes them.
Our plain-language take, written for civic education.
Source: By PoliticalData.ca
The Climate-Aligned Finance Act requires federal financial institutions to align their operations with Canada's climate goals through reporting, risk adjustments, and restrictions on carbon offsets, effective on the first anniversary of royal assent.
The Climate-Aligned Finance Act requires federal financial institutions to align their operations with Canada's climate goals. Key provisions include: (1) Defining 'climate commitments' as legally binding targets under international agreements like the Paris Agreement and domestic laws such as the Canadian Net-Zero Emissions Accountability Act. (2) Mandating reporting on climate risks and alignment with climate commitments for financial institutions. (3) Restricting the use of carbon offsets for compliance with emissions targets. (4) Requiring capital-risk adjustments for investments in fossil fuel projects. (5) Establishing enforcement mechanisms, including penalties for non-compliance. (6) Amending the Canada Pension Plan to align with the act's effective date. The act comes into force on the first anniversary of royal assent, with some provisions applying later under the Canada Pension Plan.
- Mandates federal financial institutions to report on climate risks and alignment with climate commitments
- Restricts the use of carbon offsets for compliance with emissions targets
- Requires capital-risk adjustments for investments in fossil fuel projects
- Establishes enforcement mechanisms for non-compliance
- Amends the Canada Pension Plan to align with the act's effective date
- Federal financial institutions (e.g., banks, insurance companies)
- Individuals and entities involved in carbon offset programs
- Creditors and debtors in bankruptcy proceedings
- Regulatory bodies overseeing financial institutions
- The bill does not specify exact penalties for non-compliance
- The exact criteria for 'climate-aligned' investments are not detailed
- The effective date for some provisions under the Canada Pension Plan is not specified
Certain provisions of the act apply to the Canada Pension Plan on a later date.
The act applies to federal financial institutions under this law.
Climate-aligned bonds are given priority in bankruptcy cases.
The act applies to federal financial institutions subject to this law.
The act aligns with existing climate legislation.
The act aligns with existing climate legislation.
Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.
Official textParliamentary Process
Bill S-238 completed its first reading in the Senate on October 29, 2025, and is now at second reading, with procedural steps reflecting its formal introduction and debate in the chamber.
Bill S-238, titled 'An Act to enact the Climate-Aligned Finance Act and to make related amendments to other Acts,' completed its first reading in the Senate on October 29, 2025. This procedural step marked the bill's formal introduction to the Senate. The bill is now at second reading in the Senate, with its latest debate occurring on April 21, 2026. Key procedural milestones include the sponsor's speech by Independent Senators Group member Rosa Galvez during the first reading and a response speech by Conservative Senator Michael L. MacDonald during the second reading debate. The bill's progression reflects standard parliamentary stages, with no legal changes enacted at this stage. Similar bills, such as S-243 from the previous parliament, have followed comparable pathways through the Senate.
The Senate completed the first reading of Bill S-238, scheduled its second reading for October 31, 2025, and conducted routine business including committee authorizations and motion notices.
On October 29, 2025, during the Senate's first reading of Bill S-238 (An Act to enact the Climate-Aligned Finance Act and related amendments), the bill was introduced by Senator Rosa Galvez. The Senate proceeded with routine business, including motions to table reports, adjust committee memberships, and call attention to historical commemorations. The bill was placed on the Orders of the Day for second reading, scheduled two days later. Other motions included authorizing committees to study defence procurement and cultural responsibilities. This record reflects procedural steps and unrelated Senate business, not the bill's legal content.
Bill S-238 is undergoing second reading in the Senate, with debates and speeches held on February 5 and April 21, 2026, as part of its procedural advancement.
Bill S-238 is currently at the second reading stage in the Senate. The latest debate occurred on April 21, 2026 (Sitting 65), with a response speech by Senator Michael L. MacDonald (Conservative). The bill was first read in the Senate on October 29, 2025, and its second reading was formally introduced on February 5, 2026 (Sitting 48). Key speeches during this stage included the sponsor's speech by Senator Rosa Galvez (Independent Senators Group) on February 10, 2026. The bill aims to enact the Climate-Aligned Finance Act and amend other legislation. A similar bill, S-243, was previously introduced in the 44th Parliament and is currently in committee stage in the Senate. This stage does not alter the law directly; it is part of the procedural process to advance the bill.
The local model returned a partial structured draft. This summary requires human review before publication.
The local model returned a partial structured draft. This summary requires human review before publication.
This metadata references a Senate debate discussion document available via an HTML-formatted URL.
The provided JSON contains metadata about a Senate debate transcript. It includes the URL to the official text, specifies the format as HTML, identifies the artifact type as a discussion, and notes the chamber as the Senate.
The local model returned a partial structured draft. This summary requires human review before publication.
The local model returned a partial structured draft. This summary requires human review before publication.
The Senate debate records cover discussions on climate policy, tourism, voting age reform, and legislative procedures, with references to specific bills and parliamentary processes.
The provided text contains Senate debate records from Canada, focusing on various legislative and policy topics. Key themes include climate policy, tourism promotion, voting age reform, and legislative process discussions. The debates involve members of the Senate discussing proposed bills, policy directions, and procedural matters. The text includes references to specific bills (e.g., Bill C-12), committee reports, and parliamentary procedures. No final votes or legal outcomes are mentioned in the provided excerpts.
This JSON metadata references a Senate debate discussion transcript in HTML format, accessible via the provided URL.
The provided JSON contains metadata for a Senate debate transcript. The official text is available at the given URL in HTML format. The artifact is categorized as a discussion record from the Senate chamber.
Bill S-238, concerning the enactment of the Climate-Aligned Finance Act, has not yet reached the Third Reading stage in the Senate.
The Senate has not yet reached the Third Reading stage for Bill S-238. The latest activity noted was debate at the Second Reading stage on Tuesday, April 21, 2026. The bill was first read on Wednesday, October 29, 2025, and had its Second Reading on Thursday, February 5, 2026.
Bill S-238, concerning climate-aligned finance, has undergone first reading in the House of Commons and is currently at second reading in the Senate.
This record indicates that Bill S-238, An Act to enact the Climate-Aligned Finance Act and to make related amendments to other Acts, has reached its first reading in the House of Commons. This is the initial step where a bill is formally introduced. The record also notes that the bill has progressed to second reading in the Senate, with a sponsor's speech and a response speech taking place.
Bill S-238 has not yet reached the Second Reading stage in the House of Commons, but it has progressed to Second Reading in the Senate.
This artifact describes the procedural stage of Bill S-238 in the House of Commons. It indicates that the bill has not yet reached the Second Reading stage in the House of Commons. The artifact notes that the bill's current status is 'At second reading in the Senate', with a 'Latest activity' of 'Debate at second reading on Tuesday, April 21, 2026 (Senate)'. It also lists the 'First reading' date as Wednesday, October 29, 2025, and 'Second reading' date as Thursday, February 5, 2026, both occurring in the Senate. Major speeches related to the Senate's second reading are noted for February 10, 2026, and April 21, 2026.
Bill S-238, an act to enact the Climate-Aligned Finance Act, has not yet reached the 'House of Commons Consideration in committee' stage, and is currently at second reading in the Senate.
This artifact describes the legislative process for Bill S-238. It indicates that the 'House of Commons Consideration in committee' stage has not yet been reached. The bill is currently at the second reading stage in the Senate. The artifact lists the dates of first and second reading in the Senate, as well as dates for major speeches made during the second reading debate. It also notes similar bills that have been introduced in the current and previous Parliaments.
Bill S-238, concerning climate-aligned finance and related amendments, has reached the Report stage in the House of Commons but has not yet proceeded, and is currently at second reading in the Senate.
This artifact describes the legislative progress of Bill S-238. It indicates that the bill has reached the Report stage in the House of Commons, but this stage has not yet occurred. The bill's current status is at second reading in the Senate. The artifact also lists key dates for its progress, including first reading, second reading, and major speeches in the Senate.
Bill S-238, concerning climate-aligned finance, is currently at second reading in the Senate, with third reading in the House of Commons listed as a future stage that has not yet been reached.
The artifact indicates that Bill S-238 has reached the 'House of Commons Third reading' stage but this stage has not yet occurred. The bill is currently at the 'second reading' stage in the Senate. The provided text details the bill's progress, including its first and second reading dates in the Senate and lists major speeches given during the second reading debates. It also references similar bills introduced in this and a previous Parliament.
Debate and sitting links point to official parliamentary sources when LEGISinfo publishes them. Any plain-language discussion summaries should be generated from those official texts and reviewed before public display.
Vote Summary
This bill is still active. We only show vote counts after the legislature publishes a recorded division.
No published representative vote breakdown
This bill is still moving through the process. When a recorded division is published, representative positions can be listed here.
Official sources
Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.
How this data is sourced