Quantcast

37 of the World's Biggest Banks Fueling Climate Change

Popular
Top of JPMorgan Chase Tower, Dallas, Texas. Joe Mabel / Wikimedia

A report released Wednesday by Rainforest Action Network, BankTrack, Sierra Club and Oil Change International, in partnership with 28 organizations around the world, revealed that the world's biggest banks are continuing to fuel climate change through the financing of extreme fossil fuels.


The report found that 2016 actually saw a steep fall in bank funding for extreme fossil fuels. However, despite this overall reduction, banks are still funding extreme fossil fuel projects at a rate that will push us beyond the 1.5 degrees climate change limit determined by the Paris climate agreement.

In 2014, the banks analyzed in the report funneled $92 billion to extreme fossil fuels. In 2015, that number rose to $111 billion. 2016 was the first full calendar year to be studied since the signing of the Paris climate agreement—and the $87 billion figure represents a 22 percent drop from the previous year. While the drop-off is a move in the right direction, it is vital that this become an accelerating trend and not a blip.

The findings showed that if we are to have any chance of halting catastrophic climate change and reaching the Paris goal of limiting climate change to 1.5 degrees, there must be a complete phaseout of these dangerous energy sources and banks must implement policies against extreme fossil fuel funding.

"Right now, the biggest Wall Street funder of extreme fossil fuels is JPMorgan Chase," said Lindsey Allen, executive director of Rainforest Action Network. "In 2016 alone they poured $6.9 billion into the dirtiest fossil fuels on the planet. On Wall Street they are number one in tar sands oil, Arctic oil, ultra-deepwater oil, coal power and LNG export.

"Even in this bellwether year when overall funding has declined, Chase is funneling more and more cash into extreme fossil fuels. For a company that issues statements in favor of the Paris climate accord, they are failing to meet their publicly stated ambitions."

The report, Banking on Climate Change, is the eighth edition of this fossil fuel finance report card that ranks bank policies and practices related to financing in the most carbon-intensive, financially risky and environmentally destructive sectors of the fossil fuel industry. Those sectors are: extreme oil (tar sands, Arctic, and ultra-deepwater oil), coal mining, coal power and liquefied natural gas (LNG) export.

"There is simply not enough time left for more excuse-making, more fiddling at the policy edges and more egregious bank investments in extreme infrastructure projects like pipelines that transport tar sands oil," said Yann Louvel, BankTrack's climate and energy campaign coordinator. "When we sit in meetings with bank staff, we hear of their revulsion to Trump's stance on climate change and of their support for clean investments, yet their actions of continued investments in extreme fossil fuels demonstrate that they actually side with the Trump approach.

"The climate and profit imperatives for banks can coincide when it comes to clean energy investing, but as they continue to prove with their shortsighted fossil fuel investments, they're at complete odds with the world's long-term climate targets."

The report also explored bank failures when it comes to protecting human rights. The most glaring example of this in 2016 was the financing for the Dakota Access Pipeline (DAPL) and the rampant violations of Indigenous rights associated with that project—which triggered an Indigenous-led defund and divest movement that targets banks that finance dirty energy projects.

"The movement standing up to fossil fuel projects wherever they are proposed has gotten so large that these investments are now not only problematic from a climate and human rights perspective, but they're also risky investments from an economic perspective too," said David Turnbull, campaigns director at Oil Change International. "Our research has shown that any new fossil fuel development runs counter to our climate goals. If banks want to truly be leaders in their field, they need to stop ignoring climate risk and ensure their investments pass the climate test."

In this past year alone, San Francisco, Seattle, WA, and Davis, CA, pulled their money out of Wells Fargo because of the bank's various misdeeds including the funding of DAPL. Caving into public pressure, multiple major banks have announced that they are pulling out of DAPL, which emphasizes the need for proactive bank policies that restrict financing to fossil fuels and the human rights abuses associated with their extraction and transport.

"As the Trump administration continues to make reckless decisions that threaten our climate, it is more important than ever that the public is informed about whether the financial institutions we trust with our money are making investments that will worsen this crisis," said Lena Moffitt, senior campaign director of the Sierra Club's Our Wild America campaign. "The people are watching where and what banks sink their funds into, and they will not back down until every last one commits to investing in a future that benefits their communities, their economies and their health."

EcoWatch Daily Newsletter

Pixabay

By Lisa Wartenberg, MFA, RD, LD

Pears are sweet, bell-shaped fruits that have been enjoyed since ancient times. They can be eaten crisp or soft.

Read More Show Less
Photon-Photos / iStock / Getty Images Plus

The desert of Australia's Northern Territory has the iconic Ayers Rock, but not much else. Soon, it may be known as home to the world's largest solar farm, according to the Guardian.

Read More Show Less
Sponsored
Golde Wallingford submitted this photo of "Pure Joy" to EcoWatch's first photo contest. Golde Wallingford

EcoWatch is pleased to announce our third photo contest!

Read More Show Less
A Boeing 737-800 BCF (Boeing Converted Freighter) is marked "Prime Air" as part of Amazon Prime's freight aircraft during the 53rd International Paris Air Show at Le Bourget Airport near Paris, France on June 22. Mustafa Yalcin / Anadolu Agency / Getty Images

It's Prime Day! The day when thousands of increasingly absurd items are discounted so deeply that you suddenly need items you never knew existed. Yes, I do need a hotdog shaped toaster next to me while I watch this Fast & Furious seven movie box set! And I need it in my house today!

Read More Show Less

By Peter Sinclair

The weather in many areas across the U.S. has been – and certainly throughout America's heartland was for much of the past winter and spring – frightful.

Read More Show Less
Sponsored
There's a short window between when a tick bites and when it passes on bacteria or virus. MSU Ag Communications, Courtesy Dr. Tina Nations, CC BY-ND

By Jerome Goddard

When it comes to problems caused by ticks, Lyme disease hogs a lot of the limelight. But various tick species carry and transmit a collection of other pathogens, some of which cause serious, even fatal, conditions.

Read More Show Less
tomosang / Moment / Getty Images

By Jessica A. Knoblauch

Say goodbye to one of the dreamiest things about childhood. In the Midwest, fireflies are dying off.

Read More Show Less
A new Climate Emergency Fund contains more than $625,000 which will go to grassroots climate action groups like Extinction Rebellion and students who have organized weekly climate strikes all over the world. @ExtinctionR / Twitter

By Julia Conley

Heeding the call of grassroots campaigners, several wealthy philanthropists announced Friday a new fund that will raise money for climate action groups around the world.

Read More Show Less