Friday, 17 January 2025
Home Topics Climate BMO becomes first Canadian bank to withdraw from Net-Zero Banking Alliance
ClimateFinanceNewsPolitics

BMO becomes first Canadian bank to withdraw from Net-Zero Banking Alliance

5
FILE PHOTO: A coat of arms is seen on one of the original Bank of Montreal (BMO) buildings in Toronto, Ontario, Canada June 1, 2021.  REUTERS/Chris Helgren/File Photo
FILE PHOTO: A coat of arms is seen on one of the original Bank of Montreal (BMO) buildings in Toronto, Ontario, Canada June 1, 2021. REUTERS/Chris Helgren/File Photo

By Nivedita Balu

TORONTO (Reuters) -TD Bank, Bank of Montreal and National Bank of Canada said on Friday they were withdrawing from the Net-Zero Banking Alliance (NZBA), joining the big six US banks in quitting the banking sector climate coalition.

The Canadian banks’ action follows that of U.S. lenders that have been rushing in the past two months to quit the climate coalition amid rising U.S. political pressure.

Goldman Sachs broke ranks to announce on Dec. 6 it was leaving NZBA and was soon followed by Wells Fargo, Citi, Bank of America, Morgan Stanley and JPMorgan.

The NZBA, a UN-sponsored initiative set up by former Bank of Canada Governor Mark Carney, was launched in 2021 to encourage financial institutions to limit the effects of climate change and push toward achieving net-zero emissions.

Canada’s second largest bank TD, said it had the resources to advance its climate strategy and advise clients as they adapt their businesses.

“We are fully committed to our climate strategy and supporting our clients as their lead partner in the transition to a net zero world,” BMO said in a statement.

The lender, Canada’s third largest, also said it had “robust internal capabilities to implement relevant international standards,” to support its climate strategy and meet regulatory requirements.

National Bank, Canada’s sixth largest lender, said it would streamline how it reports its plans and progress in light of mandatory disclosure requirements.

Canadian banks have faced mounting pressure to address climate-related risks arising from their funding activities in the past few years.

The country’s banking regulator has also addressed climate risks and has introduced guidelines for financial institutions to manage their climate-related risks.

Separately, the U.S. Federal Reserve announced it had withdrawn from a global body of central banks and regulators devoted to exploring ways to police climate risk in the financial system.

(Reporting by Nivedita Balu in Toronto, Editing by Louise Heavens and Daniel Wallis)

Related Articles

FILE PHOTO: A drone view shows a site where beachfront houses were burnt down by the Palisades Fire, in Malibu, California, U.S., January 16, 2025. REUTERS/Mike Blake/File Photo
RegulationsUtilities

LA public utility’s wildfire liability hinges on equipment’s role, Moody’s says

Moody's says LADWP's liability for the Palisades Fire hinges on equipment involvement;...

U.S. President Joe Biden answers questions regarding talking to hostages and TikTok as he made a stop at St. John's Church before the U.S. Conference of Mayors in Washington D.C., U.S., January 17, 2025. REUTERS/Annabelle Gordon
Critical MineralsFinance

Biden boosts loan for ioneer’s Nevada lithium mine to nearly $1 billion

The U.S. DOE finalized a $996M loan for ioneer’s Rhyolite Ridge lithium...

Imperial Oil logo at the company's annual meeting in Calgary on April 28, 2017. THE CANADIAN PRESS/Jeff McIntosh
OilRegulations

Alberta Energy Regulator lays nine charges against Imperial Oil for 2023 spill

Alberta charges Imperial Oil over 5.3M-litre toxic wastewater spill at Kearl site,...

FILE PHOTO: Miniatures of windmill, solar panel and electric pole are seen in front of words Clean energy in this illustration taken January 17, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
ElectricityFinanceFuelPolitics

US clean energy tax subsidies to cost $825 billion over 10 years, CBO says

U.S. clean energy subsidies under Biden's Inflation Reduction Act to raise deficits...

Login into your Account

Please login to like, dislike or bookmark this article.