Canadian Banks Exit Net-Zero Banking Alliance Amid Political Pressure

Three leading Canadian banks—TD Bank, Bank of Montreal, and National Bank of Canada—have exited the Net-Zero Banking Alliance, aligning with major US banks amid rising political pressure. The alliance, initiated by former Bank of Canada Governor Mark Carney, aimed to promote climate-friendly finance practices.

In a significant withdrawal, TD Bank, Bank of Montreal, and National Bank of Canada have announced their departure from the Net-Zero Banking Alliance (NZBA), a climate-driven banking coalition. This move echoes the earlier exit of six major U.S. banks amid escalating political pressure in the United States.

The alliance, a United Nations-endorsed initiative led by former Bank of Canada Governor Mark Carney and launched in 2021, seeks to guide financial institutions toward achieving net-zero emissions. Recent departures have underscored the challenges financial institutions face as they navigate political and market pressures to address climate change.

Canada's large financial institutions assert their commitment to internal climate strategies and responsibilities, with TD Bank focusing on supporting clients in business adaptations. Meanwhile, the Bank of Montreal and National Bank of Canada have emphasized their capabilities and streamlined reporting methods to align with emerging regulatory demands.

(With inputs from agencies.)