Canada’s largest bank is putting new restrictions on lending to some fossil fuel developments.
In a policy that was recently released RBC has stated that it won’t lend money to new coal-fired power generators, thermal coal mines or coal mines that require mountaintop removal.
“We are committed to finding ways to balance the transition to a low-carbon economy while supporting efforts to meet global energy needs and our energy clients,” said bank spokesman Andrew Block.
The policy will apply to new investments and not the bank’s current investment portfolio.
The bank says it won’t lend to new clients that get more than 60 per cent of their revenue from thermal coal or coal-fired power generation. It will lend to new clients that get some revenue from those industries if they can show they’re moving away from coal or reducing their greenhouse gas emissions.
It should be noted that RBC is not currently a member of the Race to Zero campaign. It remains to be seen how their strategy will evolve.
Find out how to join the Race to Zero here.