RBC and Scotiabank say they’re dropping their 2030 targets for reducing financed emissions as governments pull back on climate action and artificial intelligence drives a surge in energy demand.
In 2022, RBC set goals to reduce funded emissions for the oil and gas, power generation and automotive sectors by the end of the decade as part of working toward net-zero financed emissions by 2050.
The bank says in its sustainability report that after reviewing numerous factors including government policy, geopolitical developments and energy demand, it has concluded that its interim targets are not reasonably achievable.
RBC says it maintains its long-term ambition to reach net-zero financed emissions, but achieving that will require supportive policy and advances in technology.
Scotiabank says in its sustainability report that necessary actions on climate change haven’t evolved to the extent expected, so it’s withdrawing both its interim targets and its goal of achieving net-zero by 2050 for financed emissions.
It cites factors like the U.S. curbing major parts of the Inflation Reduction Act, Canada eliminating the consumer carbon tax and not implementing an oil and gas emissions cap, as well as rising energy demand from AI and a lack of progress on carbon capture technology for the change.