Toronto – RBC's new corporate commitment to weed out customers without proper net-zero transition plans means the bank will stop lending to Canada's largest oil sands company, one person said. . report From Greenpeace Canada. Greenpeace calls on RBC to exclude oil companies like Suncor, Cenovus and CNRL whose net-zero transition policies do not meet standards set by the International Energy Agency to assess corporate action on climate change. ing. Greenpeace is also calling on the federal government to use the IEA standards as the basis for new rules on climate finance.
“RBC supports the aspirations of indigenous, environmental and investor groups to phase out fossil fuel financing, respect prior free and informed consent, and increase investment in climate action. „We clearly feel that,“ said Keith Stewart, senior energy strategist at Greenpeace Canada and author of RBC. Walking the Talk: Why RBC is obligated to suspend funding to its biggest oil customers. “If RBC's new climate finance policy is to be treated as anything more than greenwash, it must stop funding oil companies whose transition plans do not pass the tests set by the International Energy Agency.”
as largest funder RBC, Canada's fifth-largest producer of fossil fuels in the world, is phasing out funding for oil, gas and coal projects that accelerate climate change, destroy biodiversity and violate Indigenous rights. There is growing pressure to cancel it. RBC made the announcement in its November 2023 report after years of saying it would engage with companies rather than sell them. Customer engagement approach on climate change The company said it is „prepared to make difficult business decisions and ultimately exit if our customers do not demonstrate an adequate plan for the energy transition after repeated engagement.“
Days after RBC posted the new policy on its website, the International Energy Agency announced its November 2023 policy. Oil and gas industry transitions to net zero This report establishes a reliable standard for determining whether oil and gas companies are actually planning adequately for the energy transition.
green peas Stick to your word The report applies IEA standards to three major oil sands producers: Cenovus, CNRL, and Suncor. This is because these companies are among RBC's largest fossil fuel customers, have a long history of investor engagement on climate change, and have net-zero commitments. The report finds that all of these companies fall far short of meeting the IEA's criteria for alignment with the IEA Net Zero Scenario, as they:
- Commitment to investing in new fossil fuel projects. Companies aligned with the IEA's net-zero scenario should not invest in new long-term fossil fuel projects.
- We allocate less than 20% of our capital budget to clean energy. The IEA says it should exceed 50 percent.
- GHG reduction targets for 2030 range from 15 to 30%. The IEA says it should exceed 60%.
„If we are to have any chance of solving the climate and biodiversity crisis, we need to take significant funding away from fossil fuels and into climate action,“ Stewart said. „It's time for RBC to finally 'walk the talk' on tackling climate change and stop funding oil and gas companies without credible net-zero transition plans.“
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Note to editors:
RBC releases latest information climate report In it, RBC admitted it had set even lower standards for its oil and gas customers because it saw no way for them to meet the 1.5°C target.upon 13 pages, RBC says: “Many of our customers in high-emission, hard-to-reduce sectors do not have emissions reduction targets aligned to 1.5°C. This is particularly important for the oil and gas sector, which typically does not have a clear path to achieving this. At the same time, we help our clients decarbonize today's production and explore new growth opportunities in low-carbon energy. Therefore, our eligibility criteria for decarbonization activities can be based on an assessment of a client's transition plan and be considered eligible even in the absence of a 1.5°C aligned emissions reduction target. There is a possibility.“
For more information, please contact us below.
Keith Stewart, Senior Energy Strategist, Greenpeace Canada
(email protected); +1 416 659-0294