Canadian Banking Titans Exit Net-Zero Alliance Amid Political Tensions

Several major Canadian banks, including TD Bank, have withdrawn from the Net-Zero Banking Alliance. This follows similar exits from U.S. banks amid rising political pressures. The UN-sponsored initiative aims to drive financial institutions towards net-zero emissions, but banks are prioritizing independent climate strategies.

Several major Canadian banks, including TD Bank and the National Bank of Canada, announced their withdrawal from the Net-Zero Banking Alliance, a move following the footsteps of major U.S. banks amidst increasing political pressures.

The Net-Zero Banking Alliance, launched in 2021 under the guidance of former Bank of Canada Governor Mark Carney, is a UN-sponsored initiative that rallies financial institutions to mitigate the impacts of climate change through net-zero emissions targets.

While banks like TD Bank express commitment to climate strategies independently, the exits raise questions about the future effectiveness of collective climate efforts in the financial sector. This realignment comes as the U.S. Federal Reserve also shifts its engagement with climate-focused international bodies.

(With inputs from agencies.)