Some federal parties prioritize accountability over the financial sector on climate change
Ottawa | Traditional, unceded territory of the Algonquin Anishinaabeg People –
Today, environmental groups have released responses to a survey sent to federal parties’ on their plans to integrate climate action into Canada’s financial system.
The questions ask about aligning the financial system with climate action and resilience, and ensuring that financial sector rules are guided by climate expertise and the long-term good of Canadians rather than by short-termism. Three parties answered yes to both questions (the Bloc Québécois, the Green Party, and the New Democratic Party). The Liberal Party did not select yes or no and provided a comment instead. No response was received from the Conservative Party.
Canada needs a set of rules to ensure that the financial sector is aligned with Canada’s climate commitments. Canadian financial institutions face significant risks from climate damages and are significant financiers of the climate-polluting oil and gas industries.
Polling shows that Canadians want accountability over the financial sector and its interactions with climate change.
Climate disasters already drive up insurance premiums and mortgage costs, while retirement savings in pension funds are at risk of losing their value due to professional fund managers moving too slowly on the energy transition. Climate-related financial rules are solutions for affordability and long-term economic security, and voters deserve to understand how federal parties would address climate-related financial issues.
Julie Segal, Senior Manager of Climate Finance at Environmental Defence says: “Financial institutions remain underregulated when it comes to how they contribute to climate change and how they manage the related risks. People’s lives are intimately affected by the decisions made by their banks, pension funds, and insurance companies. The next government must ensure the financial system in Canada works in the long-term best interest of Canadians, and that means acting in a way that mitigates climate change and builds resilience to its risks.”
Karine Peloffy, Lawyer & Sustainable Finance Lead at Ecojustice says: “While our global peers are building competitive, climate-resilient economies, Canada risks falling further behind — held back by outdated financial policies that ignore the perils of climate change. As we brace for economic, political, and climate storms, our next government must meet the moment with leadership that is not only courageous, but strategic and forward-looking. Future-proofing our financial system is no longer optional — it’s necessary to ensure economic stability, maintain a competitive edge, and safeguard public interest from the growing costs of climate change. We are counting on the next federal government to put forward climate-aligned finance legislation that bolsters our financial system into one that works for us, not against us.”
Background:
- The full survey results can be found here.
- The questionnaire to parties was circulated on behalf of the following three organizations: Ecojustice, Environmental Defence Canada, and Shift: Action for Pension Wealth and Planet Health.
- Elected officials from four federal parties had supported a motion in the house of commons that “the government should use all legislative and regulatory tools at its disposal to align Canada’s financial system with the Paris Agreement made by the Conference of Parties under the United Nations Framework Convention on Climate Change”.
- Canada’s trading partner jurisdictions including Europe, the United Kingdom, and Australia have stronger climate-related financial policies, which makes modernizing our financial sector necessary to strengthen non-U.S. positions.
- Financial institutions based in Toronto alone financed over $1.43 trillion CAD in fossil fuel companies in 2022, with resulting emissions equivalent to the fifth largest greenhouse gas polluter in the world.
- Polling from 2024 showed the majority of Canadians support new financial regulations related to climate change, with support exceeding three-quarters of Canadians when the policies are framed as tackling greenwashing.
ABOUT ENVIRONMENTAL DEFENCE (environmentaldefence.ca): Environmental Defence is a leading Canadian advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities.
Ecojustice uses the power of the law to defend nature, combat climate change and fight for a healthy environment. Its strategic, public interest lawsuits and advocacy lead to precedent-setting court decisions, law and policy that deliver lasting solutions to Canada’s most urgent environmental problems. As Canada’s largest environmental law charity, Ecojustice operates offices in Vancouver, Calgary, Toronto, Ottawa and Halifax.
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For more information or to request an interview, please contact:
Alex Ross, Environmental Defence, media@environmentaldefence.ca
Cari Siebrits, Ecojustice, csiebrits@ecojustice.ca
