Fossil fuel sector needs investment to reduce emissions: RBC exec

Sep 20, 2022

Share
Share
Tweet

CALGARY — Two executives from Royal Bank of Canada say financial institutions will need to invest not just in green energy companies, but also in the fossil fuel industry, if Canada is to meet its climate change targets.

RBC Capital Markets CEO Derek Neldner and RBC’s head of ESG and Strategic Initiatives Lindsay Patrick were in Calgary Tuesday for an energy conference.

Neldner said RBC believes it will cost Canada $2 trillion to achieve its goal of net-zero carbon emissions by 2050.

He said private sector investments and government incentives will be required to get there.

Environmental groups have called on Canada’s big banks to reduce their lending to the oil and gas sector. A report by Rainforest Action Network shows RBC has spent $201 billion between 2016 and 2021 on lending to and underwriting fossil fuel companies.

But Patrick said investing in “green” companies alone won’t take Canada to net-zero. She says there’s growing recognition among banks that they must also lend to oil and gas companies to support their efforts to clean up their operations and reduce, if not eliminate, the sector’s emissions.

This report by The Canadian Press was first published Sept. 20, 2022.

Companies in this story: (TSX:RY)

The Canadian Press

News from © The Canadian Press, 2022. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • 9002 Pipeline Online 30 sec EBEX
    9002 Pipeline Online 30 sec EBEX
  • 0056 OSY Rentals Hockey Draft 2023
    0056 OSY Rentals Hockey Draft 2023
  • 0055 Smart Power Be Smart with your Power office
    0055 Smart Power Be Smart with your Power office
  • 0015 Latus Viro
    0015 Latus Viro
  • 0054 SIMSA Energy Forum
    0054 SIMSA Energy Forum
  • 0053 Kingston Midstream Westspur Alameda
    0053 Kingston Midstream Westspur Alameda
  • 0052 Predator Inspections
    0052 Predator Inspections
  • 0051 JML Hiring Pumpjack assembly
    0051 JML Hiring Pumpjack assembly
  • 0049 Scotsburn Dental soft guitar
    0049 Scotsburn Dental soft guitar
  • 0046 City of Estevan This is Estevan
    0046 City of Estevan This is Estevan
  • 0043 ALX ten sizes
    0043 ALX ten sizes
  • 0039 Summit ESP Saskatchewan lower third
    0039 Summit ESP Saskatchewan lower third
  • 0041 DEEP Since 2018 now we are going to build
    0041 DEEP Since 2018 now we are going to build
  • 0032 IWS Summer hiring rock trailer music
  • 0022 Grimes winter hiring
  • 0021 OSY Rentals S8 Promo
  • 0018 IWS Hiring Royal Summer
  • 0013 Panther Drilling PO ad 03 top drive rigs
  • 0011
  • 0006 JK Junior
  • 0004 Royal Helium PO Ad 02
  • 9001
  • 0002