Earth Day Alert: Canada’s Financial System Must Prepare for the Climate Storm Ahead

FOR IMMEDIATE RELEASE: March 31, 2026

Sudbury ON in Robinson-Huron Treaty Territory: –As Canadians mark Earth Day 2026 on April 22, the urgency to address the climate crisis has never been clearer. We have just lived through the 11 years hottest years on record, and climate scientists warn that the next 18 months could bring a “super” El Niño, potentially making 2027 the warmest year ever. Under such conditions, heat domes and forest fires will become much more likely, further intensifying the impacts of climate change.

Meanwhile, climate policies have been rolled back in Canada, and we are not even halfway to meeting our global obligations to reduce greenhouse gas emissions. The stakes could not be higher because the fact is climate risks are financial risks, and Canada is falling behind.

A Missing Piece: Climate-Aligned Finance

Recent research published in Canadian Public Policy reveals that Canada has failed to adopt essential climate-related financial policies. While countries like Britain, Australia, and the European Union have implemented five or more of eight key policies, Canada has enacted fewer than three. This includes missing economy-wide climate disclosure and clear regulatory mandates.

The Climate Aligned Finance Act (CAFA): A Solution Within Reach

Four years ago, Senator Rosa Galvez introduced the Climate Aligned Finance Act (CAFA) to align Canada’s financial system with climate action. This landmark legislation would require banks and Crown corporations to develop climate action plans, set emission reduction targets, ensure board-level climate expertise, and hold institutions accountable for climate-related financial risks.

Citizens’ Climate Lobby (CCL) Canada has been working alongside Senator Galvez and over 120 civil society organizations to advance CAFA. In December 2025, CCL hosted a virtual call with Senator Galvez, drawing 99 registrants and nearly 300 online views. The City of Toronto  (IE26.3) has officially endorsed CAFA, and the House of Commons’ Environment Committee recently highlighted climate risks to the financial system in its January 2026 report.

Momentum is Building

In January 2026, Citizens’ Climate Lobby and Grandmothers Act to Save the Planet joined forces to create a national action team. Together they collected  886 sign-ons nationwide for an open letter supporting CAFA, which was sent to key senators. In February they sent over 500 paper Valentines to Parliament Hill, and volunteers are now securing meetings with senators and MPs to advance the bill.

“The world is transitioning away from fossil fuels, regardless of the distorted narratives pushed by billionaire-owned social media platforms. If banks are left holding stranded fossil fuel assets, it will be Canadian taxpayers who foot the bill, and that would be a colossal waste of public money,” says Cathy Orlando, National Director of Citizens’ Climate Lobby Canada. “We want politicians to know that we will stand with those who stand up for this much needed climate policy.”

Call to Action

This Earth Day, Citizens’ Climate Lobby Canada urges all Canadians to join the call for climate-aligned finance. We must ensure the development of Canada’s sustainable investment guidelines by December 2026 and support policies like CAFA to protect our economy and our future.

People are welcome to join Citizens’ Climate Lobby Canada and lobby with us in Ottawa or in your home ridings June 1 through June 3 during Canadian Environment Week. Our financial system should build a liveable future, not fuel the climate crisis. For more details go here: https://canada.citizensclimatelobby.org/follow-the-money/

Alternatively, people can send an email to the MPs using this online form calling on MPs to follow the money and enact policies that redirect finances to a liveable future for all:
https://canada.citizensclimatelobby.org/follow-the-money-digital-campaign/

Everyone can follow the CAFA bill here:
https://www.parl.ca/legisinfo/en/bill/45-1/s-238 

About Citizens’ Climate Lobby Canada Citizens’ Climate Lobby Canada is a non-partisan, grassroots organization empowering Canadians to advocate for effective, equitable climate solutions since 2010.

Media Contact:
Cathy Orlando, National Director
Citizens’ Climate Lobby Canada
cathy@citizensclimate.org | 705-929-4043

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