World Bank report on banks

A World Bank report reveals that nearly 60% of banks in Emerging Market and Developing Economies (EMDEs) allocate less than 5% of their portfolios to climate-related investments, with over a quarter offering no climate financing at all. This is critical as banks in these regions are vital for addressing the climate financing gap, especially given that adaptation funding is severely underfunded, comprising only 16% of climate finance. Meanwhile, a report from Investors for Paris Compliance highlights that Canadian financial institutions are also lagging in renewable energy investments, with only three out of the largest institutions meeting the International Energy Agency's target for renewable energy financing. Among Canada's major banks, the Bank of Nova Scotia ranked the lowest in renewable investment, while overall financing has increased by just one percentage point per year. Despite commitments to achieve net zero emissions by 2050, significant progress remains elusive, threatening the country's climate goals.