Toronto – Canadian banks are pouring billions of dollars into the global expansion of liquefied natural gas (LNG) terminals, which could potentially release more than 10 gigatons of climate-damaging greenhouse gas emissions, according to a new study (1).. LNG expansion depends on the support of banks and investors, with nine Canadian banks responsible for US$16.7 billion in expansion support from 2021 to 2023 (2). Reclaim Finance and Greenpeace Canada have warned that carbon emissions from these projects, which could be more harmful than coal, would violate net-zero targets. They are urging banks to stop providing financial support to developers of all new LNG projects, mainly export terminals.
LNG development is booming, with 156 new LNG terminals planned by 2030. Oil and gas companies such as ExxonMobil and TotalEnergies, along with LNG experts such as Venture Global LNG and Sempra, are planning massive expansions of their operations despite forecasts from the International Energy Agency (IEA). Excess capacity in the sector (3).
This includes 63 new export terminals, which could potentially emit more than 10 gigatons of greenhouse gas emissions by the end of the decade (4). This is roughly equivalent to the annual emissions from all coal-fired power plants in operation worldwide (5), and would result in dangerous levels of air pollution and health risks to local communities (6).
Banks and investors continue to support these projects, with banks providing $213 billion for LNG expansion globally from 2021 to 2023. This includes nine Canadian banks, but only six of these banks accounted for 97% of that support, with Royal Bank of Canada (RBC) (US$6.1 billion) and Scotiabank (US$5.5 billion) being the largest sources of financing. It was (7). .
According to the study, as of May 2024, investors held US$252 billion in assets from the top LNG developers globally for LNG expansion, with the 21 Canadian investors investing the most in LNG expansion holding US$15.8 billion worth of LNG. Appears to have assets (8).
Keith Stewart, senior energy strategist at Greenpeace Canada, says:Imagine how many clean energy projects or green homes could be built with the billions of dollars our banks poured into LNG projects around the world. While major banks are shifting money from fossil fuels to climate solutions, Canadian banks are doubling down on LNG projects that are fueling the climate crisis and violating Indigenous rights.”
The six Canadian bankers providing the most funding for LNG expansion have all pledged to align their activities with a 1.5°C path and achieve net zero by 2050, but none have taken steps to end financing for LNG expansion. Not drunk. In fact, RBC, Scotiabank, and National Bank of Canada have all significantly increased financing for LNG expansion from 2021 to 2023.
Canadian banks are lagging behind their European counterparts. Dutch bank ING has pledged to stop all financing of new LNG export terminals from 2026(9), while Barclays, BNP Paribas, BPCE, Crédit Agricole, HSBC and Société Générale have all taken part in financing LNG export terminals. Introduced restrictions.
Reclaim Finance oil and gas campaigner Justine Duclos-Gonda says:Oil and gas companies are betting their future on LNG projects, but every project they plan is putting the future of the Paris Agreement at risk. Banks claim to support oil and gas companies during the transition, but are instead investing billions of dollars in future climate bombs. LNG is a fossil fuel and new fossil fuel projects play no role in a sustainable transition.”
Reclaim Finance and Greenpeace Canada are calling on banks and investors to adopt a comprehensive policy to stop providing financial support to all new LNG project developers and stop financing primarily export terminals.
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- Justine Duclos-Gonda, oil and gas divestment activist, Reclaim Finance; [email protected]
- Laura Bergamo, Greenpeace Canada communications activist. [email protected] ; +1 438 928-5237
- Helen Burley, International Media Relations; [email protected]Call +44 7703 731923
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(1) Frozen Gases, Boiling Planet: How Bank and Investor Support for LNG Is Fueling Climate Disaster, December 2024. See an overview of Canada here.
(2) The country overview assesses financial flows (project financing and corporate financing) for the 150 largest LNG developers identified by Urgewald’s 2023 Global Oil and Gas Outlet List (GOGEL), with financial flows reflecting the proportion of LNG sector activities. It is adjusted to represent a ratio. In the company’s overall business. reference methodology For more information.
(3) IEA emphasized in its World Energy Outlook 2022 and World Energy Outlook 2023 that existing LNG export capacity is sufficient to meet future demand.
(4) LNG emissions through 2030 were calculated at the project level and aggregated at the company level using the Global Oil and Gas Outlet List extension data. Emissions calculations are based on Robert Howarth’s 2024 research paper “Greenhouse gas footprint of liquefied natural gas (LNG) exported from the United States”, using average methane leak rates from Rystad Energy to adjust methane leak rates by country.
(5) Global Energy Monitor; Global Coal Power Plant TrackerUpdated October 2024
(6) See for example IEEFA. Calcasieu Pass LNG: Unreliable operations result in excessive pollution and profits2023
(7) The six largest Canadian banks supporting LNG expansion are Royal Bank of Canada (RBC) (USD 6.1 billion), Scotiabank (USD 5.5 billion), CIBC (USD 1.9 billion), and Toronto-Dominion Bank (TD). (USD 1.4 billion). ), National Bank of Canada (USD 1.1 billion), BMO (USD 656 million)
(8) The largest Canadian investors identified are Brookfield Asset Management, Sun Life Financial, Manulife Financial, Royal Bank of Canada, Power Corporation of Canada, Toronto-Dominion Bank, BMO Financial Group, CIBC, Canada Pension Plan Investment Board, CI Financial, Scotiabank, AGF Management, Caisse de Dépôt et Placement du Québec (CDPQ), Healthcare of Ontario Pension Plan, British Columbia Investment Management, National Bank of Canada, Mawer Investment Management, Ontario Municipal Employees Retirement System, Connor, Clark & Lunn Financial Group, Ontario Teachers’ Pension Plan, public sector pension investments.
(9) financial recovery; ING tightens restrictions on LNG but leaves open the possibility of fossil fuel development.September 2024
