A report from a coalition of environmental groups shows that Royal Bank of Canada was the biggest fossil fuel financier in the world last year after providing over $42 billion US in funding.
The annual Banking on Climate Chaos report shows the bank’s funding between 2016 and 2021 put it as the fifth-largest fossil fuel funder but 2022 was the first year it provided the most money.
In 2021, RBC was the fifth-largest financier to fossil fuel projects in the world.
American bank JP Morgan was the largest financier to the industry in 2021, before being passed by RBC in 2022. JP Morgan financed the industry to the tune of $39.2 billion US last year.
According to the data, Scotiabank ranked ninth globally last year with $29.5 billion US in funding and TD was just behind it at about $29 billion US, while Bank of Montreal ranked 15th and CIBC 16th at $19.3 billion US and $17.9 billion US respectively.
Collectively, the big five Canadian banks doled out almost $140 billion US to fossil fuel developments last year.
At RBC’s annual shareholder meeting last week, chief executive Dave McKay emphasized the importance of energy security and an orderly transition away from fossil fuel funding as he defended the bank’s funding and climate record.
Environmental advocates have been pushing banks to phase out fossil fuel funding as a way to make it harder to build new oil and gas projects and to accelerate the transition to net zero emissions.
Greenpeace Canada senior energy strategist Keith Stewart said in a statement that RBC becoming the world’s largest fossil fuel funder shows bankers can’t be trusted to do the right thing on climate change, so they need to be regulated to do so.
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