When we think of the fight against climate change, the images that come to mind are concrete and obvious. The ever larger vehicles, ever more numerous, which congest our roads. The single-use plastic that clutters the overconsumption of our daily lives. And so on.
And if it was the tree that hides the forest?
One of our activities pollutes more than our daily consumption and has the potential to generate a much greater impact in the face of the greatest challenge of our time. But only if collectively, with our public decision-makers, we have the courage to look into it.
Our savings.
The new report by the Institute for Research in Contemporary Economics (IREC) commissioned by Oxfam-Québec, released today, reveals that the total carbon weight of Canadian banks in 2020 was nearly 2 billion tonnes, or 2, 6 times the total weight of Canada and nearly 23 times that of Quebec. In other words, through the projects they finance, Canadian banks cause more polluting emissions than Canada as a whole. In Canada, a medium-sized bank alone finances more polluting emissions than the transportation sector emits in the country.
Our money therefore represents our first item of carbon emissions. Once we know this, the banking sector and its regulatory framework now deserve greater attention from us. Above all, this calls for action by our governments.
We could just point the finger at the bad guys and blame the banks. On the other hand, it is also true that they have positive impacts when they support green projects that contribute to the just transition. Thus, two seemingly contradictory conclusions emerge: at the origin of each polluting project, there is an institution that financed it. But also at the origin of each future project.
The contribution of Canadian banks to the reduction and prevention of greenhouse gas emissions, through the individuals, companies and governments they finance, is for the moment largely insufficient. But time is running out and commands us to take action, rather than just blaming others. Everyone must work to develop this sector, which has the power to turn the tide.
Our individual actions are necessary to create a change in norms. However, to generate an impact that will be significant and rapid enough to achieve the climate objectives of Quebec and Canada, the big players must get started more quickly. Our banks and the big companies in the financial sector must come out of the shadows and become key players in the climate fight.
Since banks are slow to catch up on the climate crisis, because pollution has no borders, and because climate and finance are both collective issues, governments too must do more and create the regulatory framework necessary for sustainable finance.
Banks should have a legal obligation to compile and disclose all of their emissions, whether operational or funded. They should also be required to develop, adopt and publish an action plan by 2025 aimed at realigning all of their portfolios with the Paris Agreement, detailing precisely the means to get there.
We have the choice to demand a courageous shift now from the banking sector and, above all, from the federal authorities that regulate it. As part of its “Climate of Justice: Investing in an Equal Future” campaign, Oxfam-Québec has launched a petition and invites Quebecers to ask, collectively, for real sustainable finance. Let’s demand a blanket, savings and investments that align with the future we want for ourselves and our children.
A previous version of this text, which stated that the total carbon weight of Canadian banks in 2020 was almost 2 million tonnes, has been modified.