By - Canada’s Big Six banks financed US$145B in fossil fuels versus US$75B in renewables in 2024, a 0.49:1 ratio, far below the global average.
- National Bank was the only major lender to prioritize renewables over fossil fuels.
- Critics argue voluntary bank pledges aren’t working, pushing for government regulation and mandatory disclosure.
A new report from BloombergNEF reveals a widening gap between Canada’s top banks and their global peers in financing the energy transition.
In 2024, Canada’s Big Six banks provided about US$145 billion in fossil fuel financing, nearly double the US$75 billion directed toward low-carbon energy sources such as solar, wind, and grid upgrades.
Only National Bank broke the trend, becoming the sole major Canadian lender to finance more renewables than fossil fuels.
Excluding that outlier, the average clean-energy-to-fossil financing ratio across the other five banks was just 0.49 to 1, compared to a global average of 0.89 to 1. RBC had the strongest performance among the Big Five, with a ratio of 0.61 to 1, while TD had the weakest at 0.31 to 1.
Accountability Missing
A new poll shows two-thirds of Canadians favour prioritizing clean energy over fossil fuels, with overwhelming support for climate action, alignment with Europe, and net-zero-ready housing.
Despite public net-zero commitments, voluntary action appears to be stalling.
RBC, which previously promised to publish its energy ratio, reversed course citing greenwashing legislation. Other banks, including Scotiabank, have delayed disclosure until 2025. Critics say this lack of transparency erodes investor and consumer trust.
Richard Brooks, climate finance director at Stand[dot]earth, said the stagnation in clean energy financing highlights the need for federal regulation. “Voluntary pledges aren’t delivering results, it’s time for governments to legislate climate accountability in finance,” he said.
International Peers
International examples offer a stark contrast. France’s BNP Paribas achieved a 2:1 ratio in favour of renewables, showing that bank-driven energy transitions are possible when there’s both intent and regulation.
Road Ahead
Canada’s banks are now navigating a growing set of pressures, from regulators, climate activists, and ESG-focused investors. With capital increasingly flowing toward low-carbon infrastructure globally, failing to align with climate goals may expose institutions to reputational, regulatory, and financial risk.
Bottom line: Canada’s financial sector must match its climate rhetoric with capital. Without measurable, transparent shifts in energy lending, the country risks being left behind in the global clean energy race.
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