(Ottawa) The leaders of Canada’s five major banks advocated for the energy transition Thursday while facing accusations of greenwashing. In a rare move, they were simultaneously summoned before a House of Commons committee to account for their billions in fossil fuel investments and their impact on climate change.

Executives from BMO, Scotiabank, CIBC, RBC and TD Bank answered a barrage of questions from elected officials via video conference.

At the outset, BMO Financial Group CEO Darryl White said the transition to a net-zero emissions world is not “all or nothing.” “This does not mean disengaging from the energy sector,” he said.

“The five Canadian banks are all ranked in the first third of the world rankings for hydrocarbon financing,” Bloc Québécois MP Monique Pauzé reminded them.

“What do you want to say to the thousands of Canadians who consider that your actions and your directions serve to finance climate chaos, population displacement, deforestation, poisoned water, toxic waste, cancer, the destruction of ecosystems?” , she asked Scotiabank CEO Scott Thomson.

“My message to Canadians is that we can be a leader in the energy transition,” he responded. […] We must move away from reducing emissions at all costs and adopt a comprehensive strategy that encompasses all energy sources. »

This includes “aggressively” decarbonizing fossil fuel production with carbon capture and storage, expanding nuclear power and providing incentives for companies to accelerate their transition to renewable energy.

“Finally, what you are telling us, Mr. Thomson, is the same speech as the oil companies,” retorted the elected representative for the Repentigny constituency.

There is no question, either, of stopping investing in GHG-heavy tar sands. “It’s important that we do this in an orderly manner, otherwise we risk putting everything at risk. We need to protect jobs along the way, it’s about helping our clients make the transition and reduce their emissions,” said RBC CEO David McKay.

He reiterated that 80% of clients of energy companies with which RBC does business have a plan to reduce their GHG emissions.

The Banking on Climate Chaos report released in May revealed that major Canadian banks had provided $142 billion in financing for fossil fuels in 2023. The Royal Bank of Canada (RBC) topped the list with $38.6 billion, which places it 7th in the world. They also financed 49% of the 6 billion paid to the 36 tar sands companies while other banks around the world reduced their investments.

Conservative MP Gérard Deltell argued that companies in this sector can always find financing abroad if they cannot obtain it here. BMO Financial Group CEO Darryl White acknowledged it was a possibility.

Achieving carbon neutrality by 2050 in Canada will require approximately “60 billion in annual public and private investments,” the President and CEO of the Royal Bank of Canada, David McKay, has repeatedly emphasized. “That’s double what we’re spending now. »