Enacting Climate Commitments Act

Part 1 enacts the Climate-Aligned Finance Act, which, among other things, establishes the climate commitments and obligations of various entities in relation to these commitments. Part 2 establishes further obligations for entities — primarily financial entities — in relation to the climate commitments provided for under the Climate-Aligned Finance Act by (a) setting baseline requirements for entities to achieve climate commitments; (b) providing greater certainty and transparency regarding entities’ respect for their responsibilities relative to the global carbon budget; (c) ensuring that supervisory and regulatory authorities develop appropriate oversight and capital adequacy requirements; (d) requiring directors, officers and administrators to align entities with climate commitments; (e) promoting timely and meaningful progress towards entities’ alignment with the stability of both the financial system and climate in relation to systemic risks posed by emissions-intensive activities; (f) ensuring climate expertise on certain boards and disclosing certain conflicts of interest; and (g) requiring the development of action plans, targets and progress reports for entities in respect of climate commitments through reporting requirements.