(Montreal) The Royal Bank of Canada (RBC) was the largest funder of fossil fuel projects globally in 2022, according to data from the latest Banking on Climate Chaos study, released Thursday by a consortium of environmental groups.
Royal financial aid to the fossil fuel sector reached US$42 billion in 2022 according to the study, US$3 billion more than in 2021.
The bank had nearly doubled its aid to this industry from 2020 to 2021, increasing it from US$19 billion to US39 billion, according to Banking on Climate Chaos.
The Royal Bank is however part of the Net Zero banking alliance, an initiative of the United Nations.
Banks joining this alliance must commit to aligning their loan and investment portfolios towards achieving net zero greenhouse gas emissions by 2050, as well as setting intermediate goals for 2030 or earlier.
Passing through Montreal for COP15 in December, United Nations Secretary General Antonio Guterres called for a reform of the financial system and asked banks in particular to ensure that their investments promote the conservation and sustainable use of the biodiversity.
“Our call is not just for Canadian banks, it’s for the financial sector in general. It is necessary that banks and financial institutions in general and the organizations that hold them […] accelerate their change, that they move from financing fossil fuels to financing the green economy,” said the Secretary General of the United Nations. at a press conference.
The American bank JPMorgan Chase finds itself in second position in the Banking on Climate Chaos ranking, behind the Royal. Wells Fargo, Bank of America and Citi are also among the top five fossil fuel financiers for 2022.
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