(Ottawa) Leaders of Canada's five major banks called for an energy transition Thursday while accusing them of greenwashing. In an extremely rare case, they were simultaneously called before a House of Commons committee to account for their multi-billion-dollar investments in fossil fuels and their impact on climate change.
Executives from BMO, Scotiabank, CIBC, RBC and TD Bank answered a barrage of questions from elected officials via video conference.
At the outset, Darryl White, CEO of BMO Financial Group, said the transition to a zero-emissions world was not “all or nothing.” He added: “This does not mean separating from the energy sector.”
The five major banks said they were working with their energy sector clients to help them reduce greenhouse gas emissions, especially through new technologies.
“All five Canadian banks are ranked in the top third of the global rankings for hydrocarbon financing,” Bloc Quebecois MP Monique Bouzier reminded them.
“What would you like to say to the thousands of Canadians who see your actions and directives as financing climate chaos, population displacement, deforestation, poisoned water, toxic waste, cancer and the destruction of ecosystems? I asked Scotiabank CEO Scott Thompson.
“My message to Canadians is that we can be leaders in the energy transition,” he replied. […] We must move away from reducing emissions at all costs, and adopt a comprehensive strategy that includes all energy sources. »
This includes “aggressively” decarbonizing fossil fuel production through carbon capture and storage, expanding nuclear power and providing incentives for companies to accelerate their transition to renewable energy.
“Finally, what you are telling us, Mr. Thompson, is the same as the oil companies,” replied the elected representative of the Repentigny constituency.
There is also no question of stopping investment in tar sands polluted with greenhouse gases. “It is important that we do this in an organized way, otherwise we risk putting everything at risk.” “We need to protect jobs along the way, this is about helping our customers make the transition and reduce their emissions,” said RBC CEO David Mackay.
Photo by Dennis Germain, Press Archive
RBC CEO David McKay
He reiterated that 80% of RBC's energy sector clients have a plan to reduce their greenhouse gas emissions.
a report Banking on climate chaos Unveiled in May, Canada's major banks provided $142 billion in fossil fuel financing in 2023. The Royal Bank of Canada (RBC) topped the list with $38.6 billion, placing seventh.H Global ranking. They also financed 49% of the $6 billion paid to the 36 tar sands companies, while other banks around the world reduced their investments.
NDP MP Matthew Green accused them of “financing the expansion of fossil fuels that will generate new emissions for decades to come” and of greenwashing. Scientists are calling instead for abandoning the fossil fuel sector to limit global warming.
Conservative MP Gerard Deltel said companies in this sector can always find financing abroad if they do not get it here. Darrell White, CEO of BMO Financial Group, acknowledged that this was a possibility.
Achieving carbon neutrality by 2050 in Canada will require nearly “$60 billion in annual public and private investment,” as Royal Bank of Canada President and CEO David MacKay has repeatedly emphasized. “This is twice what we spend now.”
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