Fossil fuel financing by Canadian banks almost doubles the investments in renewable energy as per a newly released report.
In a recent report published by BloombergNEF, it has been revealed that the ratio of global bank funding for fossil fuel investments compared to low-carbon energy has remained relatively stable in 2024, with 89 cents spent on low-carbon options for every dollar spent on fossil fuels.
However, when it comes to Canadian banks, the situation appears to be less favourable. The report found that for Canada's Big Six banks, the ratio worsened from 0.67 to 1 in 2023 to 0.61 to 1 in 2024. TD Bank Group had the worst ratio among Canadian banking peers, with 31 cents going to low-carbon energy for every dollar directed at fossil fuels, a figure that remains unchanged from 2023.
RBC, among the Big Five banks, had the best ratio with 0.61 dollars spent on fossil fuels for every dollar spent on low-carbon energy. The bank has committed to providing $35 billion in low-carbon financing by 2030 and has pledged to release its own calculated energy supply ratio. However, RBC has stated it will not be disclosing this data publicly, citing new greenwashing laws.
Scotiabank has also pledged to release its findings on its energy supply ratio next year. National Bank is the only one among the six major lenders to fund more renewables than fossil fuels.
The Canadian Bankers Association did not immediately respond to a request for comment. It is worth noting that many banks globally, including some major ones, continue to finance fossil fuels significantly more than low-carbon energy. Banks like UBS have faced criticism for large investments in coal and deforestation despite claiming net-zero goals, a pattern that may also apply to Canadian banks but needs specific data to confirm.
This report was first published on Sept. 18, 2025, by The Canadian Press. The Canadian banks have set a target of net zero financed emissions by 2050. Excluding National Bank, the ratio for the remaining five banks was 0.49 to 1 in 2024, compared with 0.47 to 1 a year earlier. The report by BloombergNEF focuses on the ratio of global bank funding for fossil fuel investments compared to low-carbon energy.
