Scotiabank CEO warns of stalled growth without energy export reforms and infrastructure boost

Bank of Nova Scotia CEO Scott Thomson has called for increased investment in energy infrastructure and the removal of barriers to transporting energy resources and critical minerals.  

Speaking at the bank’s annual shareholder meeting in Halifax, Thomson emphasized that such measures are essential to support economic growth and diversify trade partners, as reported by The Globe and Mail.  

He urged the federal government to focus on eliminating regulatory hurdles and challenged political candidates vying for the role of Canada’s next prime minister to commit to increasing real GDP per capita by 2 percent annually.  

“Canada is facing one of the most consequential economic and existential challenges that it has faced in its 158-year history,” Thomson told shareholders.  

“This is no mere inflection point – this is something bigger. The country cannot afford to stand still, to wait to see where the chips will fall, and then react.”  

Thomson contrasted Canada’s situation with that of the United States, where the natural gas industry employed more than 220,000 workers and contributed about US$45bn to the economy in 2024.  

He noted that the industry supported global transitions from thermal coal to lower-emission options, while Canada struggled to develop a “meaningful” export terminal due to regulatory delays.  

Although European leaders have identified Canada as a preferred resource partner, Thomson pointed out that the country's critical mineral exports to Europe represent only a fraction of what it exports to the US.  

“It is clear that Canada has in abundance what the world needs, but it will take massive investment, and a clear path to enable that investment, to fully assert its position as a natural resource powerhouse,” Thomson said. “Nowhere is the challenge more obvious than in the energy sector.”  

He referenced the cancelled Northern Gateway project, which had been proposed to transport Alberta oil to the West Coast, as an example of a lost opportunity.  

In contrast, the US has constructed eight liquefied natural gas (LNG) export facilities over the past decade and has two dozen more under development.  

According to Thomson, these facilities have a combined export capacity of about 14 billion cubic feet per day and serve markets including the Netherlands, France, Japan, and South Korea.  

The meeting also addressed rising concerns from environmental groups over financial institutions’ climate commitments. 

All six major Canadian banks withdrew from the Net-Zero Banking Alliance earlier this year, following similar moves by leading US lenders.  

However, Canada’s banks stated they are maintaining their climate goals.   

In response to a shareholder’s question, Thomson said Scotiabank is introducing an energy supply ratio to monitor the bank’s financing of fossil fuels versus investments in alternative energy sources.  

He added that 80 percent of Canada’s electricity is already emissions-free and noted that most clean tech initiatives in the country are energy-related.  

“Three out of every five energy projects planned or underway” fall into the clean technology category, Thomson said.  

Recent developments in Canada's energy sector 

In line with Thomson's emphasis on enhancing energy infrastructure, several significant developments have occurred: 

• LNG Canada Project Progress: Canada’s first large-scale LNG export terminal is nearing completion in Kitimat, British Columbia, and is expected to begin operations by mid-2025. According to The Maritime Executive, the facility will export 14 million tonnes per annum (MTPA) of LNG, offering an alternative route for Canadian gas beyond the US market. 
• Cedar LNG Project Support: As reported by the Government of Canada, the federal government has announced support for the Cedar LNG project, which will be the largest Indigenous majority-owned infrastructure initiative in the country. The project aims to strengthen export diversification while maintaining climate alignment. 
• Critical Minerals Strategy: According to Natural Resources Canada, the federal government is investing up to $50m in 32 projects to develop critical mineral value chains. The strategy is intended to enhance energy security and reduce dependence on authoritarian regimes. 
• Energy Corridor Proposal: As per a report by Bloomberg, Conservative Party Leader Pierre Poilievre has proposed a national energy corridor that would transport Canadian energy domestically and to international markets without relying on US infrastructure.  

The proposal responds to concerns about trade friction with the US. 

These developments reflect ongoing efforts to address the challenges Thomson highlighted, aiming to position Canada as a significant player in the global energy market.