The National Bank of Canada (NBC) has committed to increasing its renewable energy lending to $20 billion by 2030, according to its latest sustainability report. This move is part of the bank’s strategy to meet its net-zero emissions targets, even as U.S. clean energy policies continue to evolve.
NBC plans to add nearly $10 billion in new renewable energy loans over the next six years. However, some of its existing loans will be repaid during this period, meaning the total lending amount will reflect both new loans and repayments.
NBC’s Continued Investment in U.S. Renewable Projects
Since 2019, NBC has tripled its renewable energy funding to reach $15 billion. In 2023, the bank’s renewable energy loans surpassed its non-renewable energy exposure for the first time, signaling its strong commitment to clean energy.
Despite the U.S. government’s changing policies on clean energy and former President Trump’s resistance to the sector, NBC has continued to invest heavily in renewable energy projects.
In 2023, the bank played a key role in financing two major renewable projects in the U.S.: the SunZia Wind and Transmission Project and the Solar Landscape community solar portfolio.
Emissions Reduction Target by 2030
NBC has set a target to reduce the emissions intensity of its power generation financing by one-third by 2030. To achieve this, the bank will focus on large-scale wind, solar, and hydroelectric projects. However, it will limit its financing of coal-related projects.
Key Projects Funded by NBC
SunZia Wind and Transmission Project
NBC provided $775 million in underwriting for the $8.8 billion SunZia project, which includes a 3.5 GW wind farm and a 550-mile transmission line. Developed by Pattern Energy Group LP, SunZia is set to be the largest clean energy project in U.S. history. The project will transport wind power from New Mexico to Arizona and the western U.S., improving grid reliability and providing affordable, clean energy to millions of homes.
Solar Landscape Community Solar Portfolio
NBC also served as the green structuring agent and lead arranger for a $283 million green loan to Solar Landscape LLC. This loan will support 107 MWdc of rooftop solar projects in New Jersey, including 101 solar rooftops. The project is designed to comply with New Jersey’s Community Solar Energy Program, ensuring that at least 51% of the clean energy generated will benefit low- and middle-income households.
Reducing Emissions Across High-Carbon Sectors
NBC has set ambitious carbon reduction targets to help drive North America’s transition to clean energy. By 2030, the bank aims to cut emissions across high-carbon sectors, including oil and gas, commercial real estate, and power generation.
Oil and Gas Sector Transition
The oil and gas industry accounts for 26% of Canada’s greenhouse gas emissions. NBC is focused on helping the sector reduce its carbon footprint. As of 2024, the bank has already achieved a 32% reduction in Scope 1 and 2 emissions and an 18% reduction in Scope 3 emissions. By 2030, NBC aims to reduce emissions across all scopes by 31%.
Commercial Real Estate and Energy Efficiency
Buildings are a major contributor to climate change due to their energy use for heating, cooling, and lighting. NBC is working to reduce emissions in commercial real estate by promoting energy-efficient technologies. By 2024, the bank had already reduced emissions from this sector by 25%, and its goal is to cut Scope 1 and 2 emissions by 50% by 2030.
Power Generation and Clean Energy Goals
NBC’s power generation portfolio includes solar, wind, hydro, nuclear, and biogas. It aims to reduce Scope 1 emissions from power generation by 33% from 2019 levels by 2030. As of October 2023, the bank had already reduced emissions intensity by 29%.
Strengthening Restrictions on Coal Financing
NBC is tightening its financing policies regarding coal. The bank will no longer fund new thermal coal mines or lend to clients that derive more than 25% of their revenue from coal mining. It will also avoid financing new coal-fired power plants, unless the project is part of a transition to clean energy. Existing clients will only receive support if they have committed to net-zero emissions by 2050 or are phasing out coal operations.
Commitment to a Net-Zero Future
NBC is focused on enhancing its sustainability strategy and increasing investments that have a lasting environmental impact. The bank’s ongoing efforts to support North America’s clean energy transition reflect its broader goal of contributing to a net-zero future.
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