Friends of Science Urges Canadian Banking Regulator to Rethink Climate Risk Guideline

Friends of Science Society has called on Canada's financial regulator, the Office of the Superintendent of Financial Institutions (OSFI), to rethink its guidelines concerning climate risk. This comes as discussions around the potential revival of the Keystone XL oil pipeline have emerged in Canada-U.S. trade negotiations.

The organization suggests that current guidelines may negatively impact financing and investments in the energy sector without clear evidence of their effectiveness in combating climate change. Friends of Science also posits that the Keystone XL project, through specific measures, could contribute to the revitalization of Canada's energy sector and reduce its carbon footprint.

The letter expresses concern that OSFI's directives might create uncertainty for financial institutions and delay funding for energy projects. The society advocates for decisions on these guidelines to be based on broader analysis and evidence.

This situation reflects a wider debate on aligning climate policy with economic investments in Canada and globally. The Keystone XL pipeline has been a contentious project, with its potential implementation or cancellation closely monitored.