$7 Billion From Oz Banks To Fossil Energy Projects That Would Wipe Out Planned Carbon Cuts 21 Times
Since the Paris agreement was signed, Australia’s big four banks have financed new fossil fuel projects that would cancel out the national emissions reduction target 21 times over, according to analysis by the activist investor group Market Forces. The analysis, released on Wednesday, shows the banks have loaned $7bn to 33 new or expansionary fossil fuel projects between 2016 and 2019.
Market Forces is concerned that, despite each bank making public their climate commitments and investment policies, the sector still loans almost three times as much to finance fossil fuel projects compared with renewables. The coronavirus recovery is looming as a critical point where financing and policy decisions could redefine the energy market.
Wednesday’s report listed 33 projects financed by the major banks since 2016, including the proposed third stage of the New Acland coalmine in Queensland (ANZ and NAB) and the Pluto 2 LNG train (ANZ and Westpac) which is part of Woodside’s massive Burrup Hub expansion off the Western Australia coast. The projects combined could enable the release of 9bn tonnes of carbon dioxide, which is 21 times the federal government’s planned emissions reduction to 2030.
The Guardian last month reported activist shareholders had written to the Commonwealth Bank querying several recent loans to the gas sector, which appeared inconsistent with the bank’s policies that demand it supports only projects consistent with Paris. The bank’s response was that it considered gas a “transition fuel” that could supplant coal-fired generation. Such claims are increasingly questioned by experts.
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https://www.theguardian.com/australia-news/2020/jul/08/australian-banks-undermining-paris-agreement-with-7bn-in-fossil-fuel-loans
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