Quantcast
Environmental News for a Healthier Planet and Life

Bank Funding of Fossil Fuels Soars

Energy
Bank Funding of Fossil Fuels Soars

By Katherine Wei

Private banks around the world are back to funneling more money into the global fossil fuel sectors in 2017, according to a report released today by Rainforest Action Network, BankTrack, Indigenous Environmental Network, Oil Change International, Sierra Club and Honor The Earth.


Banking on Climate Change 2018 is the ninth annual report that ranks bank policies and practices in funding fossil fuel production and extraction, including drilling for oil in tar sands, the Arctic and in deep water. The report examines 36 private banks from the U.S., Canada, Europe, Australia, Japan and China, and breaks down how much funding is going to different fossil fuel subsectors and companies.

This year's numbers saw an 11 percent jump in funding, from $104 billion in 2016 to $115 billion in 2017, with the tar sands sector holding the biggest responsibility for the increase, along with continued financing in coal. In tar sands alone, bank lending and underwriting to tar sands oil extraction and pipeline projects grew by 111 percent from 2016 to 2017, reaching $98 billion. The three banks that contributed are the Royal Bank of Canada, TD Bank and JPMorgan Chase.

The report points out how very few banks are aligning their business plans with the 2016 Paris climate agreement, whose temperature goals require banks to cease financing expansion of the fossil fuel sector. "Banks voice their support for climate action and the Paris Climate agreement, but funnel money into the fossil fuel industry at the same time," said Ben Cushing, the campaign representative of Sierra Club's Beyond Dirty Fuel campaign.

According to the report's key data, large Chinese banks and some European banks have reduced their financing in tar sands, but the reduction fell short compared to the massive increases from Canadian and U.S. banks. Aside from the tar sands sector, bank support for Arctic and deep water oil has continued its decline from the years before, dropping 17 percent in 2017. Among European banks that are redesigning their financing policies, French bank BNP Paribas has shown the most effort, with restrictions for coal financing and some parts of oil and gas as well.

Although bank financing for fossil fuels had gone down from $126 billion in 2015 to $104 billion in 2016, the adoption of the Paris climate agreement did not have a lasting effect on the banks' decisions as many environmentalists had hoped. "People are realizing that they have the ability to hold these banks accountable for investing in extreme fossil fuels … Especially with backsliding from the administration and Congress on protecting the environment and combating climate change, people are pushing corporations to take action," said Cushing.

Sierra Club activists wrote 160,000 letters to Wells Fargo Bank last year, asking the bank to stop financing projects like the Dakota Access Pipeline, and more than 25,000 Club members have pledged to divest their money from U.S. banks analyzed in the report, including Wells Fargo, Chase, Bank of America and Citi Bank.

Indigenous activist leaders have also pledged to divest in U.S. banks that fund fossil fuel companies. "Since the dog attacks and water cannons used on unarmed citizens at Standing Rock, indigenous people have been heavily engaged in divestment efforts around the world," said Tara Houska, national campaigns director of Honor The Earth. "The financial industry is on notice the human rights policies banks claim are in place must be enforced."

Reposted with permission from our media associate SIERRA Magazine.

A seagull flies in front of the Rampion offshore wind farm in the United Kingdom. Neil / CC BY 2.0

By Tara Lohan

A key part of the United States' clean energy transition has started to take shape, but you may need to squint to see it. About 2,000 wind turbines could be built far offshore, in federal waters off the Atlantic Coast, in the next 10 years. And more are expected.

Read More Show Less

EcoWatch Daily Newsletter

By Frank La Sorte and Kyle Horton

Millions of birds travel between their breeding and wintering grounds during spring and autumn migration, creating one of the greatest spectacles of the natural world. These journeys often span incredible distances. For example, the Blackpoll warbler, which weighs less than half an ounce, may travel up to 1,500 miles between its nesting grounds in Canada and its wintering grounds in the Caribbean and South America.

Read More Show Less

Trending

Kevin Maillefer / Unsplash

By Lynne Peeples

Editor's note: This story is part of a nine-month investigation of drinking water contamination across the U.S. The series is supported by funding from the Park Foundation and Water Foundation. Read the launch story, "Thirsting for Solutions," here.

In late September 2020, officials in Wrangell, Alaska, warned residents who were elderly, pregnant or had health problems to avoid drinking the city's tap water — unless they could filter it on their own.

Read More Show Less
Eat Just's cell-based chicken nugget is now served at Singapore restaurant 1880. Eat Just, Inc.

At a time of impending global food scarcity, cell-based meats and seafood have been heralded as the future of food.

Read More Show Less
New Zealand sea lions are an endangered species and one of the rarest species of sea lions in the world. Art Wolfe / Photodisc / Getty Images

One city in New Zealand knows what its priorities are.

Dunedin, the second largest city on New Zealand's South Island, has closed a popular road to protect a mother sea lion and her pup, The Guardian reported.

Read More Show Less