Both insist that they are committed to net zero and addressing climate change
The man who hopes to be Canada’s next prime minister has pledged to scrap the carbon tax on consumer fuels. And another of Canada’s biggest banks has exited a global net zero coalition.
Mark Carney says that the carbon tax “isn’t working and has become too divisive” and has pledged to cancel it immediately and replace it with a “new approach that leaves Canadians better off, while reducing our emissions,” if he is chosen to replace Justin Trudeau.
His main opponent for the PM gig, former finance minister Chrystia Freeland, has also said that the carbon tax needs to be replaced.
Conservative leader Piere Poilievre accused Carney of a “carbon tax trick” and claimed on X.com that the would-be prime minister would suspend the tax until after the election “when he will bring in an even bigger tax with no rebate.”
Poilievre’s party are leading in the polls currently, although the election may not be until October, but to get a sense of what a possible Tory government might mean for advisors and investors, WP spoke with a number of asset management professionals and portfolio managers to understand where we might see headwinds and tailwinds emerging.
Banks leave alliance
Meanwhile, all of Canada’s big six banks have now announced their decisions to quit the Net Zero Banking Alliance, following many major Wall Street financial institutions.
The latest to leave is RBC which said on Friday that it will be following TD, BMO, CIBC, Scotiabank, and National Bank, who have already announced their exit from the global organization which includes more than 135 member banks in 40 countries who are committed to align with pathways to net zero by 2050 and provide 2030 targets to show they are headed in the right direction.
RBC insists its withdrawal does not mean that it is turning its back on its drive to greener operations or its focus on “supporting our clients to help them address climate change and succeed in the transition to a low-carbon and resilient economy.”
The statement echoes the sentiment of RBC chief executive officer Dave McKay who said last month that pulling out of NZBA does not signal non-commitment to net zero and addressing climate change.
Wall Street exodus
Goldman Sachs decided to withdraw from the NZBA on December 6, 2024, and was followed by Wells Fargo, Citigroup, Bank of America, Morgan Stanley, and JP Morgan Chase over the next few weeks.
The Wall Street exodus from the alliance came after Donald Trump was elected for his second term in the White House. The new president has made it clear that he is reversing the Biden administration’s policies by supporting boosted production of fossil fuels.
It leave just five North American members of NZBA, including Vancity and Coast Capital in Canada.
