Decline in Fossil Fuel Financing
Global banking giants, particularly those in the US and Japan, provided or arranged over $700 billion for fossil fuels last year, according to a report by a consortium of NGOs titled « Banking on Climate Chaos. » This amount, however, marks a decline compared to previous years, especially among French banks.
« Banks must urgently stop funding the oil and gas expansion and prioritize financing sustainable energy projects, » commented Lucie Pinson, founder and director of Reclaim Finance, in a press release.
Impact Since the Paris Agreement
Since the 2015 Paris Climate Agreement, which aims to limit global warming to 1.5°C above pre-industrial levels, nearly $6,896 billion in loans, stock, or bond issuances have gone to oil, gas, and coal companies.
Specific Financial Support Details
The study of about 60 banks revealed they provided $705.8 billion in various forms of financial support last year, a 9.5% decrease year-over-year on a comparable basis.
JPMorgan: Top Financier of Fossil Fuels
JPMorgan remains the top global financier of fossil fuels, with nearly $41 billion allocated last year, a 5.4% increase, followed by Japanese banks Mizuho and MUFG, according to data from eight NGOs, including Rainforest Action Network, Reclaim Finance, and Urgewald.
The report also shows a gradual withdrawal by major French banks since 2020. In 2023, « one notable development is the reduction in French banks’ financing to these companies, » notes Reclaim Finance, which typically highlights poor performance. BNP Paribas remains the leading French bank (13th globally), with over $12 billion committed in 2023, the smallest amount since 2016.
French Banks’ Contribution
The contribution of the six major French banks (BNP Paribas, Crédit Agricole, Société Générale, and BPCE mainly, with Crédit Mutuel and La Banque Postale contributing minimally) was about $40 billion last year, $10 billion less than in 2022 and 5.6% of the total.
In its 2024 Climate Report, set to be released on Monday, BNP Paribas aims for a « 70% absolute reduction in financed emissions for the oil and gas sector by 2030, compared to 2022, » according to a spokesperson.
(With AFP)
