By Christopher Flavelle, The New York Times
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.