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Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

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Canadian Banks Slammed For Continued Fossil Fuel Investments

  • Canadian banks are receiving backlash from investors for their continued investments in fossil fuels.
  • All Canadian banks were revealed to have increased their exposure to fossil fuels between 2020 and 2021, by between 25 percent—TD and BMO—and 132 percent for CIBC.
  • The report is the latest example of investor pressure on financial institutions to reduce their lending to fossil fuel companies.

An investor group has criticized Canadian lenders for investing heavily in fossil fuels despite the Paris Agreement, noting that all of the largest Canadian banks still need to be ready for net zero.

In a report titled Net Zero Policy Report Card, Investors for Paris Compliance graded Canada’s largest banks on several indicators, including fossil fuel investments, climate targets, and emissions reporting.

In fossil fuel investments, all banks were revealed to have increased their exposure between 2020 and 2021, by between 25 percent—TD and BMO—and 132 percent for CIBC.

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According to the report, RBC invested $48.5 billion in fossil fuels last year, up 101 percent on 2020, and Scotiabank increased its exposure to the sector by 87 percent to $38 billion.

TD’s fossil fuel investments rose to $26.4 billion, and BMO’s went up to$23.5 billion. CIBC invested $27.8 billion in fossil fuels in 2021, Investors for Paris Compliance said, noting that the sixth bank under review, National Bank, had no data published on its fossil fuel industry exposure.

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The report is the latest example of investor pressure on financial institutions to reduce their lending to the fossil fuel sector and focus on emission reporting and reducing measures in line with international Paris Agreement commitments.

This, however, stands in stark contrast with warnings, including from the IEA, that not enough is being invested in the new supply of fossil fuels, including coal, which this year saw a real renaissance.

Despite this growing pressure from investors, banks around the world increased their exposure to fossil fuels last year. Earlier in 2022, a report produced by a group of climate nonprofits said that the world’s biggest banks had invested $742 billion in the fossil fuel industry, almost unchanged on 2020. 

The level of financing was higher than in 2016 and 2017 despite the fact that the global economy was still in recovery mode after the pandemic, the report, released in March, said.

By Irina Slav for Oilprice.com

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Leave a comment
  • George Doolittle on November 28 2022 said:
    I didn't know Canada had any Banks.

    Certainly no solvent ones anyways.
  • Mamdouh Salameh on November 28 2022 said:
    The raison d’etre of banks is to provide financial services to customers and to finance investments in projects and industries around the world and in so doing they earn reasonable profits. By virtue of being the most profitable and also the most successful industry in the world, investors and banks are always ready to avail themselves to the needs of the global oil industry.

    Therefore, banks should totally ignore pressure on them from investor groups and environmental activists not to invest in oil and gas projects.

    However, such pressure along with hasty and faulty Western green policies are what precipitated the energy crisis from which the world has been suffering since January 2021 by causing a huge global underinvestment in oil and gas projects.

    Oil and gas will continue to be produced as long as there is a global demand for them. Climate change can’t be controlled by mandates or legislations to force a halt of the use of oil and gas.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert
  • Quintavius Bonaducci on November 28 2022 said:
    I live in Central Alberta and work in oil and gas. I LOOK FORWARD to some sort of disorderly economic / social events in Canada soon. This Climatard madness is a slippery slope to a steep decline in standard of living. In a perfect world for me Alberta would become it's own country and the rest of Canada could have some hard reboot after spending some time starving in the dark.

    The self hating, spoiled liberals here take for granted that everything they touch is either grown or mined and oil and gas is the main factor input in most all growing and mining.

    If they don't like it they should strip down and walk to the nearest subsistence farm.

Leave a comment




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