Canadian Banks Among Top Fossil Fuel Financers Despite Record Heat

A coalition of environmental organizations released the Banking on Climate Chaos report, highlighting Canadian banks' significant role as financiers of fossil fuels. In 2024, funding from the world’s 65 largest banks surged by US$162.5 billion, bringing the total to US$869 billion, marking a notable shift from a declining trend observed since 2021.

RBC, the largest bank in Canada, ranked as the eighth largest global financier for oil and gas, with new commitments hitting US$34.3 billion in the last year. Following closely was TD Bank Group, which placed ninth with US$29 billion in financing. Scotiabank was listed as 13th, CIBC as 14th, and BMO Financial Group as 16th, with all major Canadian banks reporting increases in funding. Notably, TD saw a 46 percent rise, while CIBC experienced a 41 percent boost compared to the previous year.

Richard Brooks, director of climate finance program at Stand.earth, criticized the increased financing of fossil fuels, especially in the context of record-breaking global temperatures, suggesting that Canadian banks are failing to align themselves with climate science and are lacking in leadership responsibilities. Meanwhile, the Canadian Bankers Association emphasized that the banks are committed to aiding clients in their transition towards climate-resilient economic practices, acknowledging that significant commitments are essential for promoting clean economic growth and achieving the net-zero goal by 2050.