RBC jumps to world’s #1 fossil gas financier in 2022, Stand.earth and Canadian Teams React

Regardless of rising fires and floods, Canadian banks are laggards and fossil gas “lenders of final resort”

TORONTO, April 13, 2023 /PRNewswire/ — Launched at the moment, the 14th annual Banking on Local weather Chaos report, essentially the most complete world evaluation on fossil gas banking, unveils Royal Financial institution of Canada because the world’s #1 fossil gas financier in 2022.

RBC pumped over USD$42.1 billion in 2022 in fossil gas firms within the final fiscal 12 months – a rise over 2021 ranges. In complete, for the reason that Paris Local weather Settlement was affirmed in 2016, RBC has financed greater than USD$253.98 billion to fossil gas firms.

Complete total financing of fossil gas firms by Canadian banks elevated in 2022 over 2021 ranges, surpassing USD $137 billion – the biggest quantity since earlier than the Paris Local weather Settlement was signed.

Extra info on Canadian Banks fossil gas financing right here.

Public stress is mounting on RBC – Canada’s, and now the world’s – #1 fossil gas financing financial institution, to cease funding fossil gas growth and ramp up investments in climate-safe options.

At its Annual Common Assembly (AGM) in Saskatoon simply final week, RBC proved it has no real interest in Indigenous reconciliation, furthering company colonialism in how the financial institution handled the Indigenous and Black delegation. The financial institution opted to use a reserve system to its AGM, forcing Indigenous and Black delegates right into a second class room, with color-coded passes.

Outdoors the AGM, tons of of Indigenous water protectors, younger folks, and allies rallied. RBC’s AGM comes weeks after a big power of RCMP C-IRG raided a Gidimt’en village website, and arrested 5 land and water defenders, largely Indigenous girls. Days earlier, hundreds of individuals took motion for Fossil Fools Day at over 40 actions outdoors RBC branches throughout so-called Canada.

Story continues

The day earlier than its AGM, simply as RBC re-packaged present employees into a brand new local weather institute to do “thought management” on local weather, stories revealed that RBC helped organize US$5.4B of ‘sustainability-linked’ financing for a coal mine operator in Germany, and conventional house owners lodged a human rights lawsuit in opposition to 12 banks – together with RBC – for involvement in a $4.7 billion fuel challenge in Australia.

Regardless of net-zero commitments and public rhetoric, RBC continues to finance fossil gas growth, together with bankrolling harmful tasks that assault Indigenous sovereignty, just like the Coastal GasLink fracked fuel pipeline with out consent from Moist’suwet’en Hereditary management. Lots of RBC’s oil and fuel purchasers elevated total emissions in 2022.

RBC is at present underneath investigation by the Competitors Bureau of Canada for allegedly deceptive customers with climate-related promoting whereas persevering with to extend financing for coal, oil and fuel.

Fossil Gas Sector Traits (in USD)

Enlargement: The 60 banks profiled on this report funneled $150 billion in 2022 into the highest 100 firms increasing fossil fuels, together with TC Power, TotalEnergies, Enterprise World, ConocoPhillips, and Saudi Aramco.

Liquefied Pure Fuel (LNG): The highest bankers of liquefied “pure” fuel (LNG) in 2022 had been Morgan Stanley, JPMorgan Chase, Mizuho, ING, Citi, and SMBC Group. General finance for LNG almost doubled from $10.8 billion in 2021 to $21.3 billion in 2022.

Tar sands oil: The highest tar sands firms acquired $20.9 billion in financing in 2022, led by the largest Canadian banks, who offered 89% of these funds. TD, RBC, and Financial institution of Montreal high the checklist.

Arctic oil and fuel: Chinese language banks ICBC, Agricultural Financial institution of China, and China Development Financial institution led financing for Arctic oil and fuel, which totaled $2.9 billion for the highest firms on this sector in 2022. 26 banks are nonetheless financing Arctic oil and fuel, together with U.S. banks JPMorgan Chase, Citi, and Financial institution of America.

Amazon oil and fuel: Spanish financial institution Santander leads financing for firms extracting within the Amazon biome, adopted intently by U.S. financial institution Citi. Financing totaled $769 million in 2022.

Fracked oil and fuel: Finance for the fracking firms totaled $67.0 billion {dollars} in 2022, which is an 8% improve over the financing reported in 2021 for the highest fracking firms. This improve is particularly disturbing given the intense methane emissions from fracking. RBC and JPMorgan Chase are the highest financiers of fracked oil and fuel for 2022/since Paris.

Offshore oil and fuel: European banks BNP Paribas, Crédit Agricole, and Japanese financial institution SMBC Group high the checklist of worst financiers of offshore oil and fuel for 2022. Financing totaled $2.2 billion in 2022.

Coal mining: Of the $13.0 billion in financing that went to the world’s 30 largest coal mining firms, 87% was offered by banks situated in China, led by China CITIC Financial institution, China Everbright Financial institution, and Industrial Financial institution.

Coal energy: Of the financing to the world’s high 30 firms in coal energy, 97% of financing was offered by Chinese language banks. These firms, which have plans to develop coal energy capability, acquired $29.0 billion from the profiled banks in 2022.

Full information units – together with world press supplies, fossil gas finance information, coverage scores, and tales from the frontlines – can be found at bankingonclimatechaos.org.

QUOTE SHEET 

Chief Na’Moks, Moist’suwet’en Hereditary Chief, mentioned: “When C-IRG was created in 2017, with the total intent of unrestricted violence supported by the provincial and federal governments, it was to take away be the Indigenous and human rights of all peoples of so-called democratic Canada. The actions of this unit of the RCMP have confirmed that those that want to defend clear water, lands , meals safety and the very air that all of us breathe and rely on, are merely the ‘value of doing enterprise’ for industries, governments and the Royal Financial institution of Canada financing this company colonialism. No conscience, no morals, no future. The trail RBC is on might be outlined as both psychopath or sociopath – not a path for a greater future”

Sleydo’, spokesperson for Gidimt’en Checkpoint, mentioned: “Because the world’s high fossil gas financing financial institution in 2022, CEO Dave McKay is making an attempt to throw different banks underneath the bus — as if everyone seems to be as dangerous or worse. In the meantime, the Royal Financial institution of Canada is financing violence and destruction of Moist’suwet’en folks and Wedzin Kwa. RBC’s colonial Coastal GasLink challenge is fueling harassment by personal mercenaries — C-IRG. It is time for RBC to cease dodging accountability and harassing Indigenous land defenders, and defund local weather chaos now.”

Richard Brooks, Local weather Finance Director at Stand.earth, mentioned: “It is obscene that the Royal Financial institution of Canada is now the world’s dirtiest banker for fossil fuels – CEO Dave McKay needs to be ashamed. Whereas we work to advance local weather motion in any respect ranges, RBC is transferring in fully the flawed path, dragging our local weather ambitions backwards and positioning Canadian banks as fossil fuels’ lenders of final resort. Publicly, RBC spends thousands and thousands on greenwashed promoting, claiming assist for Indigenous rights. In actuality, the financial institution is polluting our communities, bankrolling local weather chaos and Indigenous rights violations to the tune of billions. RBC’s grasping fossil gas financing is a transparent sign for the necessity for elevated regulation and aggressive stress from shareholders and clients.”

Keith Stewart, senior power strategist for Greenpeace Canada, mentioned: “As RBC takes over as the biggest funder of fossil fuels on this planet and different large Canadian banks transfer up the worldwide rating, it’s clear that we are able to now not merely belief bankers to do the proper factor on local weather change or Indigenous rights. Asking politely will solely result in us persevering with to be performed for suckers by the large banks. Canada is at present legislating a requirement for auto producers to section out gasoline-powered vehicles in favour of electrical automobiles, and now our federal banking regulators should equally require banks to section out fossil gas finance whereas ramping up assist for clear power.”

Dani Michie, Digital Campaigner for Banking on a Higher Future, mentioned: “Final 12 months we rallied outdoors the Ritz Carlton in Toronto as RBC CEO was awarded Enterprise Chief of the Yr by Ivey Enterprise Faculty. We gave him a way more correct award, naming McKay the Local weather Villain of the Yr. An apt award now that RBC has moved from the fifth largest world fossil gas financer to the worst on this planet. RBC is funding local weather chaos, violations of Indigenous sovereignty, and the destruction of our collective future. The callous racism and discrimination on show on the RBC AGM final week solely confirms what we already know to be true: RBC solely cares about their backside line. This financial institution will put income over folks each time. Younger folks refuse to be greenwashed and duped by RBC, we’re transferring our cash out of fossil gas funding banks and kicking them off our campuses till they divest from fossil fuels and respect Indigenous sovereignty.”

Kate Turner, coordinator for Decolonial Solidarity, mentioned: “On a regular basis folks, together with RBC clients, are a part of a rising motion of solidarity with Moist’suwet’en Land Defenders and different communities on the frontlines of violent useful resource extraction. Simply two weeks in the past, hundreds of individuals in forty places took motion to demand that RBC withdraw all assist from Coastal GasLink and implement free, prior, and knowledgeable consent insurance policies consistent with worldwide and Canadian regulation. This report has crushed what little relevance and credibility RBC had left. RBC is quickly dropping the assist of its clients and workers, in addition to its public picture. From seniors to college students, united by solidarity, we’ll by no means cease combating for a wholesome and simply place for all.”

Gabrielle Willms, organizer with For Our Youngsters, mentioned: “After watching RBC use police and intimidation techniques to show away Indigenous land defenders and members of frontline communities at their AGM final week, it is no shock to see they’ve taken the title of world’s greatest fossil gas funder. RBC has proven no real interest in taking accountability for his or her function in fueling the local weather disaster, they usually proceed to prioritize income over fundamental human rights and a habitable future for all of us. Dad and mom and households will proceed to financial institution elsewhere and push our authorities to manage Canada’s Huge Banks till they begin respecting Indigenous sovereignty and cease undermining pressing local weather motion.”

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SOURCE Stand.earth