High banks pumping billions into oil and fuel growth regardless of local weather commitments, report says

Main banks have pumped billions into corporations increasing oil and gas manufacturing regardless of their local weather commitments, based on a brand new report.

HSBC, BNP Paribas and Barclays had been amongst those that have given essentially the most cash to those companies since becoming a member of a net-zero alliance final yr, marketing campaign group ShareAction mentioned.

That is regardless of the Worldwide Power Company (IEA) saying final Might there was no place for new fossil fuel projects if the world wished to achieve net-zero emissions by 2050.

The brand new ShareAction report discovered 25 of the most important banks in Europe have given round £300bn to corporations with plans to increase oil and fuel manufacturing – together with Shell and BP – since 2016.

All however one belong to the Internet-Zero Banking Alliance, which commits to aligning lending and funding portfolios with reaching net-zero emissions by 2050.

Regardless of this, these 24 banks have given round £24bn to companies seeking to increase manufacturing of fossil fuels since becoming a member of the worldwide alliance final yr, the report discovered.

It mentioned greater than half of this cash got here from HSBC, Barclays, BNP Paribas and Deutsche Financial institution – 4 of the Internet Zero Banking Alliance’s founding members.

HSBC funded essentially the most – round £6bn – in 2021, whereas BNP Paribas got here second at simply over £5bn and Deutsche Financial institution third at £4.2bn.

Mark Campanalde, the founding father of Carbon Tracker, mentioned the evaluation “reminds banks that there is no such thing as a pathway to internet zero that includes funding an growth … fossil gas [production]”.

He added: “Now’s the time for banks to get actual with the science, and announce a science-based moratorium on funding new fossil gas initiatives.”

A HSBC spokesperson mentioned: “We’re dedicated to working with our prospects to attain a transition in direction of a thriving low carbon financial system.” They mentioned the financial institution would publish targets to align financing for the oil and fuel sector with Paris Settlement objectives in its annual report and accounts later this month.

A Deutsche Financial institution spokesperson mentioned: “Carbon-intensive sectors account for less than a small share of our mortgage e-book and primarily based on publicly accessible information, our lending and underwriting exercise in fossil fuels is considerably smaller than world friends.” They mentioned the financial institution will measure and disclose the carbon depth of its mortgage portfolio, in addition to plans to regulate its footprint consistent with local weather targets, by the top of this yr.

A spokesperson for Barclays mentioned the financial institution has set a goal for a 15 per cent absolute discount in its financed emission from the power sector by 2025 as a part of its ambition to be a net-zero financial institution by 2050. They added: “We even have restrictions across the direct financing of latest oil and fuel exploration initiatives within the Arctic or financing for corporations primarily engaged in oil and fuel exploration and manufacturing on this area.”

BNP Paribas has been approached for remark.

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