Global financial giants swear off funding Canadian tar sands

By Christopher Flavelle, The New York Times


Highlights:

Due to pressure from shareholders and environmental activists, financial institutions and insurance companies are no longer investing in oil production taking place in Alberta, Canada.

  • Though divestment promises have been made, oil extraction from the province increased last year
  • Local Canadian banks and pension funds are still lending money for oil extraction
  • Some of the same companies pulling away from oil sands are continuing to invest in oil projects in other countries
  • Alberta’s government considers the divestment an attack on their industry and will “punish” companies that have stopped financing oil extraction 
  • Moody’s credit rating agency downgraded the creditworthiness of Alberta’s debt to its lowest level in 20 years
  • Oil sands extraction is energy-intensive and leads to about 70% more greenhouse gas generation per unit of energy on average

The Climate Center supports divestment to help speed up and scale up greenhouse gas reductions.


Read More: https://www.nytimes.com/2020/02/12/climate/blackrock-oil-sands-alberta-financing.html

Nina Turner
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