Scotiabank and RBC Retire 2030 Financed Emissions Reduction Targets

Canadian banks Scotiabank and RBC have withdrawn their 2030 interim targets to reduce financed emissions in key carbon-intensive sectors, citing policy uncertainty, slower-than-expected technology development, and changes in energy demand dynamics. Scotiabank has also dropped its 2050 net zero financed emissions goal, while RBC has retained its 2050 target.

Both banks had set 2030 financed emissions reduction goals for the oil and gas, power and utilities, and automotive sectors as part of their commitments under the Net-Zero Banking Alliance (NZBA), which they joined in 2021. Both Scotiabank and RBC, along with other major Canadian banks, exited the NZBA in early 2025, which subsequently ceased operations later that year. In its sustainability report, Scotiabank stated that public policy, energy demand, and technology deployment had not evolved as assumed in the original targets, citing 'much uncertainty' about future trajectories.

The withdrawal of these targets represents the latest in a series of climate commitment pullbacks by Canadian financial institutions amid a shifting political environment, particularly in the United States. Both banks noted external pressures as central to their decisions, rather than changes in their underlying values. RBC maintained its 2050 net zero ambition while acknowledging that achieving it will require a supportive policy environment and technological progress. Scotiabank's abandonment of its 2050 financed emissions goal marks a more significant departure from prior commitments.

Despite withdrawing interim targets, Scotiabank reported mobilising $40 billion in climate-related finance in 2025, bringing its cumulative total to $212 billion toward its $350 billion by 2030 mobilisation goal. RBC said it will continue to report on financed emissions for covered sectors and will recalibrate its strategy as circumstances evolve. The retreats by major Canadian banks underscore the tension between voluntary net zero commitments and commercial and political pressures, a dynamic closely watched by regulators and investors globally.

Key figure — $212 billion mobilised by Scotiabank toward its $350 billion climate finance goal