Thanks to all those who signed this letter in support of the Climate-Aligned Finance Act! It was sent out on May 18, 2023, with over 200 signatures and many personal comments from parents and grandparents concerned about the climate crisis.
We'll keep you posted on the movement of this bill in the Senate, and other climate-aligned financial policy! Unfamiliar with CAFA? Learn more here.
We are parents, grandparents, caregivers and constituents who live across Canada, and we are writing to you with an urgent request.
As parents and grandparents, we are deeply concerned about the climate crisis and the world our children will inherit, as the window of opportunity to secure a liveable future rapidly closes. With Canada’s financial sector continuing to fund fossil fuel expansion and heavily exposed to climate-related risk, we urgently need policy tools to reroute the financial sector’s action on climate change.
The Climate-Aligned Finance Act (Bill S-243), tabled last year in the Senate by Senator Rosa Galvez, is a comprehensive piece of legislation that would align Canada’s financial system with climate science and commitments. CAFA would:
Require all federally-regulated financial institutions to have credible plans to meet Canada’s climate commitments
Address conflict of interest on the boards of federally-regulated financial institutions and build climate expertise on the boards of major Crown corporations
Avoid carbon lock-in and respect the rights of Indigenous peoples
CAFA is currently at second reading and awaiting Senator action to move it to committee. Discussing CAFA in committee is an essential part of the Senate’s role. This would allow thoughtful engagement about the systemic risks that climate change poses to Canada’s financial system.
In a January 2022 study, the Office of the Superintendent of Financial Institutions (OSFI) and the Bank of Canada found that climate change leaves Canada’s financial system exposed to systemic risk and business default, particularly in the fossil fuel sector. The study highlights that "delaying climate policy action increases the overall economic impacts and risks to financial stability." OSFI has drafted guidance that federally regulated entities disclose exposure to climate-related risks, but further policies are needed. CAFA presents a key opportunity for the Senate to discuss the next steps for Canadian financial policy. This would not only create the regulatory clarity to build a more stable financial system, but also allow investors to seize opportunities in a rapidly decarbonizing world.
Senators, the future of our children and all Canadians depends on you. We trust that you recognize the significance of your role and share our desire for a safe, equitable future for everyone.
We ask that you speak to the importance of CAFA in Senate and call for a vote on the bill, so that it may progress to committee review as soon as possible. We have no time to waste.
Parents, grandparents and caregivers and constituents across Canada