Big banks around the world are still financing billion-dollar fossil fuel companies.
A new report, released Wednesday from a collection of climate organizations entitled Banking on Climate Chaos 2021, finds that 60 of the world’s largest commercial and investment banks have put $ 3.8 billion in fossil fuels collectively in 2016. -2020, five after the Paris agreement. signed.
“This report serves as a reality check for banks that believe vague ‘net-zero’ targets are enough to stop the climate crisis,” said Lorne Stockman, a senior research analyst at Oil Change International, one of the organizations that created the report. , in a statement published with the report. “Our future goes where the money flows, and in 2020 these banks have shown billions to trap us in the additional climate chaos.”
Annually, total fossil fuel funding has fallen by 9% in 2020. But the report attributes this to demand restrictions related to Covid-19.
The report also found that “funding for fossil fuels … from the world’s 60 largest commercial and investment banks was higher in 2020 than in 2016” in the first full year. rinsing in Paris. It is noteworthy that President Donald Trump withdrew from the international agreement in 2017. President Joe Biden joined the Paris Agreement on the first day of his term.
The three banks that made the most funding for fossil fuels in 2020, according to the report, were JPMorgan Chase at $ 51.3 billion; Read at $ 48.4 billion; and Bank of America with $ 42.1 billion.
A JPMorgan Chase representative told CNBC Make It that the bank could not comment on a third-party report. But the bank has directed CNBC Make It to its initiatives to combat climate change, including “adopting a financing commitment that is aligned with the goals of the Paris Agreement” and facilitating $ 200 billion in clean and sustainable financing by 2025.
Citi directed CNBC Make It to a blog post published Tuesday by Val Smith, the bank’s sustainable director. In the post, Citi said it will work with existing fossil fuel banking customers to move first to public reporting of greenhouse gas emissions and then to a phasing out of funding for non-compliant companies. carbon reduction.
“Being the most global bank in the world, we recognize that we are connected to many carbon-intensive sectors that have driven global economic development for decades,” Smith wrote. “Our work to achieve zero net emissions by 2050 therefore makes it imperative to work with our customers, including our fossil fuel customers, to help them with the energy systems we all rely on for the transition to a clean economy.” zero.”
Bank of America did not immediately respond to CNBC’s request for Make It’s comments.
The Banking on Climate Chaos 2021 report comes as indicators show that global economies are not currently on track to meet the emission reductions set as part of the 2015 Paris Agreement.
The 2020 report is the 12th annual, although the scope of the report has expanded at that time. The report was a collaboration of seven nonprofits: Rainforest Action Network, Bank Track, Indigenous Environmental Network, Oil Change International, Reclaim Finance and Sierra Club.
The authors of the report collect data on bank loans and subscriptions using the Bloomberg League lending methodology, which means that credit is split between banks that play a major role in a particular transaction and uses data from Bloomberg Finance LP and the Global Coal Exit List.
Banks are also given the opportunity to evaluate the findings. “The draft conclusions of the report are shared with the banks in advance and they are given the opportunity to comment on funding and policy evaluations,” the report said.
See also:
Here’s what you need to know about the “social cost of greenhouse gases” – a key climate measure
This Google X spin-off provides a way to heat and cool your home with clean energy
Bill Gates: Nuclear energy will be “absolutely” again politically acceptable