Banking on Local weather Chaos 2022: Fossil Gas Finance Report


Oil Change Worldwide, Rainforest Motion Community, BankTrack, Indigenous Environmental Community, Reclaim Finance, Sierra Membership, Urgewald.

March 2022

Obtain the complete report.

This report, Banking on Local weather Chaos 2022, analyzes fossil gas financing and insurance policies from the world’s 60 largest industrial and funding banks. We reveal that fossil gas financing from the world’s 60 largest banks has reached almost USD $4.6 trillion within the six years because the adoption of the Paris Settlement, with $742 billion in 2021 alone. It additionally highlights case research of financial institution financing for damaging fossil gas tasks and corporations world wide.

JPMorgan Chase stays the world’s worst funder of local weather chaos, with JPMorgan Chase, Wells Fargo, Mizuho, MUFG, and all 5 Canadian banks amongst people who elevated their fossil financing from 2020 to 2021. Moreover, whereas 40 of the 60 banks profiled now have some restriction on financing oil and fuel, solely 5 banks explicitly cowl oil and fuel growth corporations, regardless of the IEA clearly stating that there is no such thing as a room for investments in new oil and fuel in a 1.5°C state of affairs, as revealed by the not too long ago revealed Oil & Gasoline Coverage Tracker and Coal Coverage Device in offering detailed assessments on banks’ fossil gas insurance policies.

The report additionally assesses financial institution financing for prime corporations in sure highlight fossil gas sectors, and highlights the communities preventing tasks in these sectors that threaten their lives and livelihoods.

  • Tar sands oil: Alarmingly, tar sands noticed a 51% improve in financing from 2020–2021, to $23.3  billion, with the largest bounce coming from Canadian banks RBC and TD
  • Arctic oil and fuel: JPMorgan Chase, SMBC Group, and Intesa Sanpaolo had been the highest bankers  of Arctic oil and fuel final yr. The sector noticed $8.2 billion in funding in 2021, underscoring that  insurance policies limiting direct financing for tasks don’t go far sufficient.
  • Offshore oil and fuel: Huge banks funneled $52.9 billion into offshore oil and fuel final yr, with U.S.  banks Citi and JPMorgan Chase offering probably the most financing in 2021. BNP Paribas was the  largest banker of offshore oil and fuel over the six-year interval because the Paris Settlement.
  • Fracked oil and fuel: Fracking noticed $62.1 billion in financing final yr, dominated by North  American banks with Wells Fargo on the prime, funding producers like Diamondback Vitality and  pipeline corporations like Kinder Morgan.
  • Liquefied pure fuel (LNG): Morgan Stanley, RBC, and Goldman Sachs had been 2021’s worst  bankers of LNG, a sector that’s trying to banks to assist push via a slate of huge  infrastructure tasks.
  • Coal mining: Coal mining financing is led by the Chinese language banks, with China Everbright Financial institution  and China CITIC Financial institution because the worst financiers in 2021. Huge banks total supplied $17.4 billion to  the sector final yr.
  • Coal energy: Coal energy funding has been primarily flat the final three years, at round $44  billion — which is alarming provided that coal energy must be quickly phased out this decade and  subsequent. China Retailers Financial institution and Ping An Group led financing for the sector final yr.

As for banks on the right track, France’s La Banque Postale has set the bar for oil and fuel insurance policies, publishing in 2021 a dedication to finish financing for all corporations increasing oil and fuel, and exit the sector fully by 2030. Banks akin to Crédit Agricole and Nordea Financial institution have made related  commitments on coal. Their international friends should additionally tackle the essential process of instantly ending  financing for fossil gas growth and starting to section out all different fossil gas financing, lest they lead  our world additional into local weather catastrophe.

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