The year 2024 marked a significant period for sustainable finance in North America, with mixed outcomes that reflected both progress and setbacks. Despite the overall growth in sustainable bond issuance, reaching $124 billion—a modest 1% increase from the previous year—there were notable shifts in policy and corporate behavior. The US, which accounted for about 80% of this issuance, saw its commitment to sustainability challenged when the new administration withdrew from the Paris Agreement in early 2025. This decision led to a retreat by several major US banks from climate-focused alliances, signaling a potential slowdown in federal-level initiatives. However, corporate and state-level efforts remained resilient, offering hope for continued momentum in sustainable finance.

In response to these challenges, key financial institutions have taken proactive steps to advance sustainable projects. Bank of America (BofA), for instance, has been at the forefront of supporting clean energy infrastructure and carbon capture technologies. BofA's involvement in financing large-scale renewable projects, such as the SunZia Transmission and Wind facilities, demonstrates its commitment to reducing carbon emissions. Additionally, the bank made a substantial impact investment of $205 million to support carbon capture tax credits, marking one of the largest investments in this area since the passage of the Inflation Reduction Act. Meanwhile, SMBC played a crucial role in structuring green bonds for Dow Chemical Company, helping fund its ambitious Path2Zero project aimed at achieving net-zero emissions in Alberta. These initiatives highlight the ongoing efforts by financial institutions to drive industrial transformations through sustainability.

Despite political uncertainties, the region’s leading banks have demonstrated unwavering dedication to sustainable development. Scotiabank, for example, has excelled in issuing green bonds and supporting innovative projects in emerging markets. Its leadership in Latin America, where it holds a significant market share in sustainable bonds, underscores its global influence. Similarly, CIBC has been instrumental in advising on green bond frameworks and financing community-driven projects, including affordable housing and medevac services for remote communities. These actions not only contribute to environmental sustainability but also foster social equity and economic resilience. Ultimately, the perseverance of these institutions reflects a broader commitment to building a more sustainable and inclusive future, even in the face of adversity.