The move is triggered by President Donald Trump's return and his resolve to roll back Biden-era policies related to climate change
Royal Bank of Canada (RBC) became the latest bank to exit the Net Zero Banking Alliance (NZBA) after Toronto-Dominion Bank and Bank of Montreal left the coalition earlier this month. Bank of Nova Scotia, Canadian Imperial Bank of Commerce and National Bank of Canada have also announced their exits earlier this month.
The exodus led by major bankers in the US early last year has been joined by all the biggest banks in Canada. In December last year, the alliance has been deserted by Goldman Sachs, Morgan Stanley, Wells Fargo, Bank of America, Citigroup and JPMorgan Chase & Co.
The move is triggered by President Donald Trump's return and his resolve to roll back Biden-era policies related to climate change. The Republican Party's attack on climate finance has also gained strength with Trump's rise to power.
RBC, in a statement, reaffirmed its commitment to the fight against climate change saying that leaving NZBA will not stop it from supporting its clients in addressing climate change and succeeding in the transition to a low-carbon economy.
“We have informed the NZBA that we will be departing the organisation, as we now have the tools and capabilities to help implement our climate strategy and measure our performance,” an RBC spokesman said.
Similar statements have been made by all the banks that have abandoned the alliance. They have said that the move won't change their decarbonisation efforts.
All the banks leaving the climate finance alliance assured that the move will not affect their commitment towards combating climate change.
The coalition, a subgroup of the Glasgow Financial Alliance for Net Zero, continues to have more than 135 members from around 40 countries. The members are required to align their lending and investment portfolios with the pathways to net zero latest by 2050. They are also required to provide a 2030 target for greenhouse gas emissions.