Climate Change Strategies Coming into Focus for Large Canadian Banks with Restrictions on Fossil Fuel Lending

Canada has positioned itself at the forefront of the global fight against climate change, looking to change its global role as the 10th-largest emitter of greenhouse gas (GHG) emissions, which account for approximately 1.6% of global GHG emissions. Energy sourced from oil, natural gas, and other forms of fossil fuels, such as coal, has been a key driver of the Canadian economy and its wealth creation. Canada is the fourth-largest exporter of oil and the fifth-largest exporter of natural gas with the third-largest proven reserves of oil globally. The oil and gas (O&G) industry has accounted for more than 20% of Canada’s exports and 27% of its total GHG emissions; however, in 2015, Canada signed the Paris Agreement on Climate Change, which will pressure the energy industry to become “greener”.