Enactment2The Climate-Aligned Finance Act is enacted as follows:An Act to require certain financial and other federally regulated entities to mitigate and adapt to the impacts of climate changePreambleWhereas there is a broad scientific consensus and high confidence that anthropogenic greenhouse gas emissions cause global climate change and present an unprecedented risk to the environment — including its biological diversity — to human health and safety, to economic prosperity and to the stability of the Canadian financial system;Whereas the impacts of climate change — such as coastal erosion, thawing permafrost and increases in heat waves, droughts and flooding — and related risks to critical infrastructure and food security are being felt throughout Canada and are impacting Canadians and disproportionately affecting Indigenous peoples, low-income citizens and northern, coastal and remote communities;Whereas the Parliament of Canada recognizes that it is the present generation’s responsibility to minimize the impacts of climate change on future generations;Whereas the United Nations, Parliament and the scientific community have identified climate change as an issue of international concern that is unconstrained by geographic boundaries;Whereas Canada has ratified the United Nations Framework Convention on Climate Change, adopted in New York on May 9, 1992, and in force as of 1994, and the objective of that Convention is the stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system;Whereas Canada has ratified the Paris Agreement, adopted in Paris on December 12, 2015, and in force as of 2016, and the aims of that Agreement include holding the increase in the global average temperature to well below 2°C above preindustrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, recognizing that this would significantly reduce the risks and impacts of climate change; Whereas the Parliament of Canada adopted the Canadian Net-Zero Emissions Accountability Act, which requires a Government of Canada plan to achieve a prosperous net-zero-emissions future in Canada by 2050 at the latest, supported by public participation and expert advice;Whereas the Parliament of Canada adopted the Greenhouse Gas Pollution Pricing Act in furtherance of the “polluter pays” principle;Whereas the Parliament of Canada adopted the United Nations Declaration on the Rights of Indigenous Peoples Act to ensure that the laws of Canada are consistent with the Declaration and to implement an action plan to achieve its objectives;Whereas our economic and financial systems are interdependent with life-supporting ecosystem services — such as a stable climate — making the maintenance of a stable climate a matter of superseding public interest;Whereas climate-related financial risks cannot be treated as conventional financial risks because they are characterized by radical uncertainty and irreversible catastrophic consequences and therefore require a distinct approach to urgently align financial flows with climate commitments;Whereas the Bank of Canada recognizes that climate change poses significant risks to the financial system and the economy, including physical risks that arise from more frequent and severe extreme weather events and risks that stem from the transition to a low-carbon, net-zero economy;Whereas climate-related financial risk is endogenous to financial systems and continued financial support for emissions-intensive activities increases future climate-related risks to the stability of financial systems and the long-term interests of financial institutions;And whereas investment in energy efficiency, clean energy and clean technologies and the incentivization of innovation and behavioural change must replace investments in greenhouse-gas-emission-intensive activities for effective action against climate change;Now, therefore, His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:Short Title

Short title1This Act may be cited as the Climate-Aligned Finance Act.

Interpretation

Definitions2The following definitions apply in this Act.climate change impact, in relation to an activity,(a)is positive if it furthers or facilitates achievement of climate commitments, including by contributing to an entity being in alignment with climate commitments as described in section 4; and(b)is negative if it makes achieving climate commitments less likely, including by contributing to an entity not being in alignment with climate commitments as described in section 4. (effet sur les changements climatiques)climate commitments means(a)obligations and commitments under the following, whether or not they are binding on an entity:(i)the United Nations Framework Convention on Climate Change adopted in New York on May 9, 1992, including the principles of common but differentiated responsibilities and respective capabilities,(ii)the Paris Agreement, adopted in Paris on December 12, 2015, and in force as of 2016;(iii)amendments to the Paris Agreement made by the Conference of Parties under the United Nations Framework Convention on Climate Change, as well as any additional agreements or instruments adopted by the Conference of Parties after the entry into force of the Paris Agreement, and(iv)the Canadian Net-Zero Emissions Accountability Act, including the national greenhouse gas emissions target of net-zero emissions by 2050 at the latest, as established under section 6 of that Act; and(b)reduction of emissions on a pathway that respects the global carbon budget and is consistent with limiting global temperature increase to 1.5°C over pre-industrial levels, with no or low overshoot;(c)non-perpetuation and elimination of dependence on emissions-intensive activities, including by planning for a fossil-fuel-free future;(d)preservation, enhancement and restoration of natural carbon sinks, including forests and peatland; and(e)enhancement of the capacity to adapt and reduce vulnerability to actual and expected impacts of climate change, including by increasing the resilience of socio-economic, built and ecological systems. (engagements climatiques)emissions means all direct and indirect emissions of greenhouse gases set out in column 1 of Schedule 3 of the Greenhouse Gas Pollution Pricing Act that are associated with the full life cycle of an activity, including emissions(a)from all stages of production, from the point of resource extraction or utilization through to the completion of the activity;(b)that occur after the activity, including emissions resulting from the distribution and end use of products resulting from the activity;(c)associated with the activity that are scope 2 or scope 3 emissions as those concepts are described in guidance and standards contained in the Greenhouse Gas Protocol developed under the partnership of the World Resources Institute and the World Business Council for Sustainable Development, as updated from time to time; and(d)related to agriculture, forestry or other land-use change required for an activity. (émissions)emissions-intensive activity means an activity that is a fossil fuel activity or that does one or more of the following:(a)produces emissions in a manner that does not align with climate commitments;(b)hampers the development or deployment of low-emission alternatives; and(c)perpetuates the use of assets in a way that is inconsistent with climate commitments. (activité à forte intensité d’émissions)entity means a corporation or a partnership, sole proprietorship, trust or other unincorporated organization capable of conducting business. (entité)federal financial institution means(a)the Bank of Canada;(b)a bank, an authorized foreign bank or a bank holding company and its subsidiaries within the meaning of the Bank Act;(c)a body corporate to which the Trust and Loan Companies Act applies;(d)an association to which the Cooperative Credit Associations Act applies;(e)any body corporate regulated by the Insurance Companies Act;(f)a pension plan that has been registered under the Pooled Registered Pension Plans Act or the Pension Benefits Standards Act, 1985;(g)the Business Development Bank of Canada;(h)the Canada Infrastructure Bank;(i)the Canada Deposit Insurance Corporation;(j)the Canada Mortgage and Housing Corporation;(k)the Canadian Commercial Corporation;(l)Export Development Canada;(m)Farm Credit Canada;(n)the Canada Development Investment Corporation;(o)the Canada Pension Plan and the Canada Pension Plan Investment Board; and(p)the pension plans established under each of the following:(i)the Canadian Forces Superannuation Act,(ii)the Public Service Superannuation Act, and(iii)the Royal Canadian Mounted Police Superannuation Act. (institution financière fédérale)financially facilitate means to provide any assistance or services of any financial value, including(a)funds or funding of any kind, including debt and equity financing;(b)project or general corporate financing of any kind;(c)loans, loan guarantees, insurance or credit protection of any kind;(d)the issuance, purchase, transfer, securitization, arrangement, underwriting, syndication, sale or any other transaction of any security or derivative instrument; and(e)off-balance-sheet activities; and(f)the provision of any advisory, consulting or management services. (faciliter financièrement)fossil fuel activity means any activity involved in the fossil fuel supply or demand chain, including(a)exploring for or extracting, producing, exploiting, transporting, storing, exporting, refining or retailing oil, gas or coal; and(b)the combustion of oil, gas or coal for energy generation in a power plant. (activité liée aux combustibles fossiles)global carbon budget means an amount calculated based on the best available science and a precautionary approach that equals the maximum cumulative emissions into the atmosphere above which there is no longer a high probability of limiting global temperature increase to 1.5°C above pre-industrial levels (budget carbone mondial)person with climate expertise means a person, other than a board member of a reporting entity who is required to make a disclosure under subsection 13(1), with demonstrable experience in proposing or implementing climate actions and(a)who has expertise in or knowledge of one or more of the following:(i)climate change science, including the environmental, ecological, social, economic and distributional effects of climate change,(ii)physical and social sciences experience — such as scenario analysis — or knowledge — such as knowledge of carbon sinks — that is relevant to climate change,(iii)climate change policy and climate policy at the international, national or subnational levels, including the likely effects and efficacy of potential responses to climate change,(iv)social innovation and technologies that contribute to decarbonization,(v)science-based energy supply-and-demand scenarios that are consistent with climate commitments, and(vi)Indigenous ways of knowing, being and doing; or(b)who has acute lived experience related to the physical or economic damages of climate change. (personne ayant une expertise en matière de climat)reporting entity means(a)a federal financial institution;(b)a corporation within the meaning of the Canada Business Corporations Act;(c)an entity that operates any federal work, undertaking or business as defined in paragraphs (a) to (e) or (j) of the definition federal work, undertaking or business in section 2 of the Canada Labour Code; and(d)an entity listed in schedule III of the Financial Administration Act. (entité déclarante)

Purpose

Purpose3The purposes of this Act are to(a)align the activities of reporting entities with the public-interest objective of achieving climate commitments;(b)address systemic risks related to climate change; and(c)limit the risks that federal financial institutions pose to the climate and the financial risks that climate change poses to the Canadian financial system.

PART 1Alignment With Climate Commitments

Requirements4(1)An entity in alignment with climate commitments(a)contributes substantially to realizing climate commitments;(b)makes no decision or determination that facilitates, furthers or financially facilitates another person or entity acting in a way that is inconsistent with climate commitments;(c)does not cause, exacerbate or prolong vulnerabilities to the effects of climate change, including loss of biodiversity;(d)refrains from any land disturbance — including destruction or degradation of forests and peatland — affecting carbon sinks unless the project’s or activity’s end state will result in a positive climate change impact;(e)produces overall positive or neutral climate change impacts; and (f)does not undermine legal and other remedies available to redress climate harm or negative climate change impacts.Other considerations(2)An entity that is in alignment with climate commitments(a)respects the rights of Indigenous peoples, including those rights enshrined in the United Nations Declaration on the Rights of Indigenous Peoples, which was adopted by the General Assembly of the United Nations as General Assembly Resolution 61/295 on September 13, 2007;(b)in the context of its climate-related actions,(i)takes into consideration vulnerable groups, communities and ecosystems, including the biodiversity of those ecosystems,(ii)makes decisions based on equity and the best available science, and(iii)does not promote, foster or exacerbate food insecurity or inequalities in society; and(c)does not cause significant harm to the fulfillment of social and environmental obligations that Canada recognizes.

PART 2ReportingInterpretation

Definitions5The following definitions apply in this Part.climate commitments alignment report means a report that is prepared by a reporting entity in accordance with subsections 7(1) and (2) and that demonstrates, with reference to the best available scientific evidence, how the plan developed under subsection 6(1) will enable the reporting entity to be in alignment with climate commitments as described in section 4. (rapport d’alignement sur les engagements climatiques)targets means the goals set by a reporting entity to reduce its emissions so that it is in alignment with climate commitments as soon as possible. (cibles)

Plans and Targets

Climate commitments6(1)In accordance with this section, a reporting entity must prepare a plan for achieving the targets for the years to which the plan relates within two years after this Act comes into force and(a)at least every five years thereafter until 2050; and(b)after 2050, for any year for which it establishes a target.Plan elements(2)The plan must include(a)targets for the years to which the plan relates;(b)measures to prioritize and encourage(i)immediate and ambitious action,(ii)emissions reductions within the value chain, and(iii)change and innovation to replace emissions-intensive activities;(c)measures on operational and capital allocation for existing and new lines of business to ensure the achievement of targets; and(d)consideration of how the reporting entity’s executive compensation, governance and strategy can be deployed to achieve targets.Restriction(3)Plans cannot(a)allow for offsets to be used as a replacement for reducing emissions unless(i)the reporting entity has undertaken the maximum feasible mitigation of emissions,(ii)the offsets are produced through proven emissions removal methods, and(iii)the offsets are strictly necessary to neutralize minimal residual emissions that cannot be abated with available technology; or(b)rely on or presuppose the future invention, discovery or large-scale deployment, beyond the remit of the reporting entity’s activities, of any emissions removal, capture or storage technology, tool or technique to claim or promise reductions in emissions unless it(i)states that the reporting entity contributes directly to making such a future invention, discovery or large-scale deployment feasible and available within a reasonable time frame, and(ii)contains detailed information — including an economic analysis — that demonstrates that this reliance or assumption will enable the reporting entity to be in alignment with climate commitments as described in section 4 and is not for the purpose of justifying continued or increased fossil fuel activities.Offset information(4)If a plan makes use of offsets as permitted under paragraph (3)(a), it must include both a statement that the conditions referred to in that paragraph are met and detailed information that sets out and explains the quality, certification and third-party assurance verification used to justify reliance on offsets and how the use of those offsets is in alignment with climate commitments.Federal financial institution(5)In respect of a federal financial institution,(a)emissions, for the purposes of developing plans and targets, include emissions that are facilitated or furthered by the federal financial institution, including by being financially facilitated by it;(b)targets must include absolute emissions targets established at the sectoral and portfolio levels and for individual investment holdings across all classes of debt and equity; and(c)plans must detail how and to what extent the federal financial institution engages with entities it financially facilitates to(i)incentivize decommissioning emissions-intensive activities, diversifying energy sources, financing zero-emissions energy and infrastructure and developing and adopting change and innovation,(ii)escalate climate concerns regarding emissions-intensive activities of financially facilitated entities and exclude entities that are unable or unwilling to align with climate commitments, and(iii)minimize actions that have a climate change impact that is negative.

Reporting Requirements

Obligation7(1)No later than 60 days after the end of each financial year, a reporting entity must prepare and make available to the public a climate commitments alignment report, unless it can demonstrate that it had no or negligible emissions in the preceding financial year.Content of report(2)The report must(a)contain(i)details of the reporting entity’s targets with respect to climate commitments, setting out specifically how they align with a pathway that respects the global carbon budget and are consistent with limiting global temperature increase to 1.5°C over pre-industrial levels, with no or low overshoot,(ii)the reporting entity’s plans to reach the targets provided in subparagraph (i),(iii)details on the reporting entity’s progress on achieving its targets and implementing its plans,(iv)a description of how the reporting entity’s targets and plans with respect to climate commitments represent responsible stewardship of an equitable allocation of the global carbon budget, based on the reporting entity’s historic emissions and the different development needs of regions and communities,(v)details of the material assumptions made by the reporting entity in relation to climate commitments, including those related to economic life and contingent liabilities related to emissions-intensive assets,(vi)details on the reporting entity’s emissions, specifying in particular the sources of information used to calculate the emissions, any assumptions, the methods used to verify the calculations and any other relevant information with respect to the quality of the information being reported by the reporting entity in respect of its emissions, and(vii)information regarding any activity undertaken either by the reporting entity or on its behalf that is an activity described in paragraph 5(1)(a) or (b) of the Lobbying Act — if a reference in those paragraphs to “public officer holder” is read as a reference to “public office holder, public body, partnership, trade union or association” — on a matter related to the environment or climate; and(b)contain information referred to in subsection 13(2).Report made public(3)For the purposes of subsection (1), the reporting entity makes a climate commitments alignment report available to the public by making it easily accessible from the public-facing website of the reporting entity to which it relates and by ensuring that it can be viewed free of charge and without registration of any kind.Obligation(4)If an enactment requires a reporting entity to provide an annual report or financial statements to any person or entity at a particular time or at particular intervals — including at an annual general meeting — the reporting entity’s most recent climate commitments alignment report must form part of the annual report or those financial statements despite any provision of any other enactment.

Minister — Canadian Net-Zero Emissions Accountability Act8The Minister designated under section 5 of the Canadian Net-Zero Emissions Accountability Act may, on recommendation of the Net-Zero Advisory Body and based on the best available international standards and science,(a)develop and provide any tool, form or guidance on which a reporting entity may rely when preparing its climate commitments alignment report, plans or targets;(b)adapt any tool, form or guidance referred to in paragraph (a) to a specific sector or type of enterprise, such as small businesses or other small-scale entities; and(c)by order, define “negligible emissions” for the purposes of subsection 7(1).

PART 3Capital AdequacySuperintendent Guidelines

Development9(1)The Superintendent of Financial Institutions must develop guidelines for capital adequacy for a bank, an authorized foreign bank or a bank holding company and its subsidiaries within the meaning of the Bank Act, and those guidelines must account for exposures and contributions to climate-related risks and provide for(a)increased capital-risk weights for financing exposed to acute transition risks, considering(i)higher risk, including a risk of stranded assets, for any loan, bond or derivative exposure to any fossil fuel activity or new fossil fuel resources or infrastructure,(ii)differentiation in transition-risk intensity among oil, gas and coal exposures, and(iii)the existence of short-term climate action plans in alignment with climate commitments;(b)a systemic climate risk–contribution capital surcharge that(i)recognizes the extent to which the activities of financial institutions financially facilitate emissions,(ii)bolsters resilience in the face of systemic risks being contributed to through financially facilitating emissions-intensive activities, and(iii)uses an institution’s level of financially facilitated emissions as a proxy for its contribution to the systemic risk it places on the financial system; and(c)any other microprudential and macroprudential measures aimed at ensuring that an entity over which the Superintendent of Financial institutions has supervisory authority is in alignment with climate commitments.Additional guidelines(2)The Superintendent of Financial Institutions must develop guidelines for funding requirements in respect of climate commitments for the entities listed in paragraphs (c) to (f) of the definition federal financial institution. These guidelines must encompass all asset classes and types of activities that those entities undertake to financially facilitate emissions-intensive activities.Deadline — guidelines(3)The guidelines developed under subsection (1) must be published on an easily accessible public-facing portion of the Superintendent’s website no later than one year after the day on which this section comes into force.Deadline — additional guidelines(4)The guidelines developed under subsection (2) must be published on the Superintendent’s website no later than six months after the day on which the guidelines developed under subsection (1) were published on that website.Use of guidelines(5)The Superintendent(a)must use the guidelines developed under this section to assess whether an entity over which the Superintendent has supervisory authority maintains adequate capital as required by any enactment; and(b)must develop and apply enforcement measures, within the Superintendent’s existing powers, duties and functions, that are aimed at ensuring compliance with the guidelines developed under this section.

Ministerial Guidelines

Report10The Minister of Finance and the President of the Treasury Board must study the guidelines developed under subsections 9(1) and (2), and the Minister of Finance must cause to be tabled before both Houses of Parliament, no later than six months after the day on which the guidelines developed under subsection 9(2) were published, a report that contains(a)guidelines for adequate capital, budgets or funding in respect of climate commitments for any entity that is subject to any provision of the Financial Administration Act but does not report to the Superintendent of Financial Institutions; and(b)an action plan to make the guidelines referred to in paragraph (a) legally binding. The plan must include the list of legislative amendments that the Government of Canada intends to introduce for that purpose.

PART 4Appointments, Conflicts of Interest and DutiesInterpretation

Definition of organization11In this Part, organization has the meaning assigned by section 2 of the Lobbying Act.

Appointments

Appointments12At all times, at least one member of the board appointed under each of the following provisions must be a person with climate expertise:(a)section 5 of the Canada Deposit Insurance Corporation Act;(b)section 6 of the Canada Mortgage and Housing Corporation Act;(c)section 3.1 of the Canadian Commercial Corporation Act;(d)sections 4 and 5 of the Export Development Act;(e)section 105 of the Financial Administration Act, unless that board is in respect of an entity that does not need to develop a climate commitments alignment report because it had no or negligible emissions in the previous financial year;(f)section 5 of the Farm Credit Canada Act;(g)section 6 of the Business Development Bank of Canada Act;(h)section 9 of the Public Sector Pension Investment Board Act; and(i)section 8 of the Canada Infrastructure Bank Act.

Obligation13(1)Board members of a reporting entity must promptly disclose to the board if they(a)control any capital, shares, stock, voting power or voting rights or have any ownership or legal interest in an organization that does not meet the description of an entity in alignment with climate commitments as described in section 4, except to the extent that it is an asset listed in paragraphs (b) to (m) of the definition exempt asset in section 20 of the Conflict of Interest Act;(b)occupy any position in an organization that is not in alignment with climate commitments unless the sole purpose of that position is to assist the organization in becoming an entity in alignment with climate commitments as described in section 4;(c)have, in the last five years, engaged in any activity described in paragraph 5(1)(a) or (b) of the Lobbying Act on behalf of any organization that is not in alignment with climate commitments as described in section 4; or(d)provide any services to an organization that is not in alignment with climate commitments as described in section 4 unless those services are for the sole purpose of enabling that organization to become an entity in alignment with climate commitments as described in section 4.Information(2)The climate commitments alignment report must(a)contain detailed information regarding board members’ involvement in any activity described in subsection (1);(b)contain related measures taken by the board to avoid conflict of interests; and(c)state whether board members referred to in paragraph (a) recused themselves from a discussion, decision, debate or vote on fossil fuel investments.Application(3)Subsections (1) and (2) apply to appointments made after the third anniversary of the day on which this section comes into force.Clarification(4)For greater certainty, section 12 and this section apply in addition to any obligations in respect of appointments made under any enactment.

Conflict of Interest

Conflict of interest14(1)No person appointed under any provision listed in section 12 may accept any gift, benefit or contribution of any value or kind from or on behalf of an organization that is not in alignment with climate commitments as described in section 4.Exception(2)Subsection (1) does not apply in respect of any amount owed to a person by court order or by operation of law.

Duties

Duties, functions and powers15(1)Every director, officer or administrator of a reporting entity must carry out their duties and functions and exercise their powers in a way that enables the entity to be in alignment with climate commitments as described in section 4.Deeming exercice(2)Directors, officers or administrators of a reporting entity who comply with the requirement referred to in subsection (1) are deemed to carry out their duties and functions and exercise their powers, in accordance with the duties, function and powers assigned to them under any other enactment.

PART 5Enforcement and Orders

Superintendent — orders16(1)Despite any provision of any other enactment, the Superintendent of Financial Institutions may issue any order they consider appropriate to any entity listed in paragraphs (b) to (f) of the definition federal financial institution if, in their opinion, doing so is in alignment with climate commitments or will help the entity to which the order is issued ensure that it is in alignment with climate commitments as described in section 4.Superintendent — guidelines(2)If authorized by an enactment, the Superintendent may issue a direction or order to any entity over which they have supervisory jurisdiction, for the purpose of facilitating that entity’s respect for any guideline developed by the Superintendent under this Act.

PART 6Financial Products Alignment Action Plan

Plans17(1)In consultation with other relevant ministers of the Crown, the responsible Minister must prepare an action plan to incentivize financial products that support climate commitments and disincentivize those that are inconsistent with climate commitments, with a view to identifying legislative amendments to(a)taxation legislation, including exemptions under taxation legislation;(b)Schedule III to the Pension Benefits Standards Regulations, to prohibit investments that are inconsistent with climate commitments; (c)legislation governing bankruptcy proceedings so as to(i)prioritize the repayment of bonds whose purpose is to support climate commitments, and(ii)disincentivize the repayment of bonds whose purposes are inconsistent with climate commitments; and(d)enact appropriate enforcement mechanisms, including through the enactment of criminal offences for knowingly making false or misleading statements in climate commitment alignment reports.Collaboration(2)In preparing the action plan, the responsible minister must collaborate with provinces to encourage alignment with climate commitments throughout the entire Canadian financial and commercial system, including in relation to(a)securities disclosure for entities incorporated or regulated under the law of a province or territory, in order to ensure transparency and clarity of disclosure; and(b)protecting consumers from misleading information regarding climate commitment alignment reports as defined in Part 2, including through enacting related whistleblower protections.Consultation(3)In preparing the action plan, the responsible minister must also consult with(a)the Superintendent of Bankruptcy appointed under subsection 5(1) of the Bankruptcy and Insolvency Act;(b)the Superintendent of Financial Institutions;(c)the Bank of Canada; and(d)persons with climate expertise.Content(4)The action plan must include(a)criteria for identifying financial products whose purposes are in alignment with climate commitments, taking into account this Act and the best available international standards and science and justifying any departure from them;(b)mechanisms to prevent the proceeds of financial products whose purposes are in alignment with climate commitments from being used for activities that are inconsistent with climate commitments; and(c)a description of legislative amendments to federal laws — including the Income Tax Act and regulations under that Act, the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and Schedule III to the Pension Benefits Standards Regulations — that, in the opinion of the responsible minister, are desirable to incentivize financial products that support climate commitments and to disincentivize the use of products that are inconsistent with climate commitments.Responsible minister(5)In this section, responsible Minister means the minister designated under subsection (6).Designation(6)The Governor in Council may, by order, designate a member of the King’s Privy Council for Canada as the responsible Minister for this section.Action plan(7)The responsible Minister must prepare an action plan no later than one year after the day on which this section comes into force.Report — legislative amendments(8)On any of the first 20 sitting days after the action plan is completed, the responsible Minister must cause the action plan to be tabled in both Houses of Parliament, along with a detailed analysis of the legislative amendments referred to in paragraph (4)(c) and a proposal, including a timetable, for making them.

PART 7Reviews and Reports

Documents — Bank of Canada18(1)Within two years after the day on which this Act receives royal assent, the Minister of Finance must cause to be tabled in each House of Parliament(a)a report regarding Indigenous peoples’ perspectives on the activities of the Office of the Superintendent of Financial Institutions and the Bank of Canada — including in respect of long-term investments, the adaptation and resilience of the Office and the Bank within the financial system and the stewardship of the financial system by the Office and the Bank for future generations — that is(i)co-developed with the Office of the Superintendent of Financial Institutions, the Bank of Canada and representatives of Indigenous peoples, and(ii)based on consultations with Indigenous peoples on these matters; and(b)a report prepared by the Bank of Canada and developed in consultation with persons with climate expertise that evaluates whether monetary policy established by the Bank aligns with climate commitments and makes recommendations to help entities to be in alignment with climate commitments as described in section 4.Consultation(2)The reports described in paragraphs (1)(a) and (b) must include details on the consultations and co-development that occurred in their preparation.

Independent review19(1)The Governor in Council may, by order, designate any federal minister to be the Minister responsible for this Act, and that Minister must cause to be conducted, every three years beginning on the day on which this section comes into force, an independent review of this Act and its administration.Deadline(2)The Minister referred to in subsection (1) must cause a report on the independent review conducted under that subsection to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the review is completed, which must be no later than nine months after the review was commenced.

Parliamentary review20In every third year after the year in which this section comes into force, a comprehensive review of this Act and its administration is to be undertaken and completed by a committee of the Senate, of the House of Commons or of both Houses of Parliament that is designated or established for that purpose.

Implementation review21(1)Every year after this section comes into force, a report on the implementation of this Act must be prepared by(a)the Superintendent of Financial Institutions in respect of entities over which the Superintendent has supervisory oversight; and(b)the Minister of Finance in respect of parent Crown corporations as defined under subsection 83(1) of the Financial Administration Act.Tabling(2)The Minister of Finance must cause any report prepared under subsection (1) to be laid before both Houses of Parliament no later than 10 sitting days after the report is completed.