The challenge is compounded by Canada’s position as the world’s fourth-largest oil reserve holder and petroleum producer, with most of its coal and oil production being exported. In 2023, the country’s five largest banks each underwrote bonds for coal-powered utility companies.
The report does acknowledge some positive developments.
Brookfield Asset Management is raising funds to transition coal assets to clean power, Royal Bank of Canada plans to triple its renewable energy lending to $35bn by 2030, and Manulife Financial Corp. committed $690m to energy-transition investments.
Despite these efforts, Investors for Paris Compliance stresses the need for stronger government measures to enhance renewable energy financing.
The organization highlighted that “weak power-sector policies by financial institutions, as well as the great variation in how these policies are applied, highlights the need for stronger voluntary guidelines as well as financial-sector regulations.”