National Bank sets $20 billion renewable energy funding target

A National Bank sign is seen May 30, 2016 in Montreal. THE CANADIAN PRESS/Paul Chiasson

MONTREAL — National Bank says it’s aiming to reach $20 billion in renewable energy lending commitments by 2030 as part of its net-zero emissions push, even as the U.S. government works to unwind supports for the sector.

The bank says in its latest climate report that, factoring in amortization and repayments on existing loans, the target translates into nearly $10 billion in additional renewable lending over the next six years.

National Bank says that since 2019 it has tripled its renewable funding to $15 billion and that in 2023 its total renewable lending surpassed its exposure to non-renewable energy.

The bank says in the report that the new target reaffirms its support for the renewable sector as it aims to reduce the emissions intensity of its power generation portfolio by a third by the end of the decade.

The commitment comes as the U.S. Trump administration works to roll back a range of clean energy funding commitments, revoke or stall permitting and take other measures to slow the expansion of renewables.

Climate advocates have been pushing banks to make firm and clear funding commitments like the renewables target to create more accountability and momentum on reducing emissions.

Renaud Gignac, senior advisor with Investors for Paris Compliance, welcomed the commitment in a statement.

“In doing so, National surpasses most other Canadian banks in specificity, focusing on renewables as opposed to vague ‘sustainable finance’ commitments.”

He noted National Bank’s target also surpasses the $15 billion renewable funding target RBC announced last year, despite National being a much smaller bank.

It’s still unclear what the scale of the pullback in U.S. funding will be. When passed in 2022, the Inflation Reduction Act ushered in hundreds of billions of dollars in funding for climate initiatives.

National Bank’s climate report highlights two projects it helped arrange funding for, both in the U.S. They included its underwriting of US$775 million as part of a US$8.8 billion financing for a wind project and transmission line in New Mexico and it leading a US$283 million green loan for a solar project in New Jersey.

The bank didn’t immediately respond to a request for comment on how the U.S. policy shift may affect its target.

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This report by The Canadian Press was first published March 6, 2025.