The CEOs of Canada’s five biggest banks faced tough questioning from lawmakers on Thursday about their plans to tackle climate change and accelerate the transition to renewable energy.
Representatives from RBC, CIBC, TD Bank Group, BMO Financial Group and Scotiabank appeared before the Standing Committee on Environment and Sustainable Development on Thursday. All five companies appeared via video conference, avoiding an in-person hearing.
NDP MP Matthew Green accused David MacKay, the president of the country’s largest bank, RBC, of ​​”touting” his own climate record while “remaining one of the largest financiers of fossil fuels in the world.”
“This is a transitional period,” MacKay responded.
“It’s a complex transition. We’re not going to move away from fossil fuels right away. Just quitting is not an option. We have to be committed to finding green sources of energy.”
Canadian banks have been criticized for being slow to make the transition, even though they remain among the world’s largest oil, gas and coal lenders.
Recent Reports Canada’s major banks estimate they will invest a combined US$103.85 billion in fossil fuel projects in 2023.
The big five banks have set short- and long-term emissions-reduction targets, including achieving net-zero emissions from lending by 2050, but questions are being raised about whether they are on track.
another Recent ReportsAn investigation by global climate policy watchdog InfluenceMap found that Canada’s five largest banks “have not aligned their short- and medium-term emissions reduction targets with their longer-term net-zero commitments.”
Banks highlight importance of oil and gas
None of the executives committed to limiting investments in the oil and gas sector to projects that will reduce emissions, but several stressed the sector’s importance.
“Energy is incredibly important to our economy and will continue to be important,” MacKay said.
At one point, Conservative MP Brandon Leslie focused on how banks have invested in renewable energy without being forced to do so by the government.
He then asked Scotiabank CEO Scott Thomson whether oil and gas projects should be evaluated on other criteria than whether the loans can be repaid.
(invoice was suggested A bill proposed by Quebec Senator Rosa Gálvez could make it harder to finance oil and gas projects.
“I don’t think energy projects should be evaluated on a different basis,” Thompson said.
Thomson later added that Canada can be a “leader in the energy transition,” but suggested oil and gas could continue to play a role in the coming years.
“We need to move from a strategy of reducing emissions at all costs to a comprehensive strategy that covers all energy sources,” he said.
Banks accused of making ‘wacky’ promises
Thursday’s testimony came after the same committee Major Oil and Gas ProducersThe committee is looking at how Canada can meet its emissions reduction commitments.
Julie Segal, a climate finance expert at the environmental group Environmental Defense, said on Thursday that “banks’ voluntary climate pledges have proven shaky” and that more regulation is desperately needed.
“We need credible climate transition plans from these banks and financial institutions. They’re not developing their own plans, so we need rules to ensure that the plans are put into action.”
Scrolling through the latest headlines, it’s easy to feel defeated on climate, but among the missed targets and dire warnings are signs of progress. CBC’s Nicole Mortillaro examines three ways the transition to clean energy is starting to take shape.
Galvez’s proposed bill, called the Climate Compatible Finance Act, would impose new rules on Canadian financial institutions to align their actions with the country’s climate goals.
The bill was introduced more than two years ago but remains in committee in the Senate, where it must overcome several more hurdles before it can be voted on and then sent to the House of Representatives.
The Canadian Bankers Association represents the country’s largest banks. oppose the billHe said the bill would add unnecessary regulation to the industry.
