Regardless of becoming a member of trade teams dedicated to attaining carbon neutrality, the world’s prime banks are persevering with to finance new oil and gasoline tasks incompatible with that objective, environmental activist teams warned on Tuesday.
The environmental teams took goal on the Glasgow Monetary Alliance for Internet Zero (GFANZ), which has emerged as the principle local weather alliance for monetary trade companies dedicated to attaining carbon neutrality by 2050 and adapting to a 1.5 diploma Celsius rise in world temperatures on this century.
However a survey by Reclaim Finance, 350.org, BankTrack, Rainforest Motion Community, Recommon, Urgewald, Les Amis de la Terre, Sierra Membership and Stand Earth discovered that many lenders in GFANZ’s Internet Zero Banking Alliance subgroup proceed to finance new oil tasks, which consultants consider are incompatible with limiting world warming to 1.5 levels Celsius.
“Between their accession date and August 2022, the 56 prime banks within the NZBA supplied at the very least US$269 billion to 102 of the most important fossil fuels,” the teams mentioned.
On the prime of the record had been two American lenders: Citigroup with $30.5 billion in financing for teams increasing oil and gasoline manufacturing, adopted by Financial institution of America with $22.8 billion. In third place was Japan’s MUFG at $22.7 billion.
The local weather teams additionally identified that asset managers proceed to carry shares from oil and gasoline firms growing new tasks.
They discovered that the highest 58 asset managers within the alliance held $847 billion in shares and bonds in firms growing new fossil gas tasks.
“There’s now broad settlement… that there isn’t any room in a 1.5 diploma carbon funds for the carbon that may be put into the ambiance from new fossil fuels,” mentioned Paddy McCully, creator of the report and analyst for Reclaim Finance.
Banks and asset managers are frequently lambasted for financing the fossil gas sector, however say they’re working to finance the power transition.