Quantcast
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.

Show Comments ()
Sponsored

How Big Is Your Environmental Footprint?

If you want to make a positive change this Earth Day but don't know where to start, one of best things you can do is take an honest look at your environmental footprint. For instance, how much water are you wasting? How much plastic are you throwing out? How much planet-warming carbon are you producing?

Luckily, there are many online calculators that crunch through your consumption habits. While the final tally might be daunting, it's the first step in living more sustainably.

Keep reading... Show less
Shopping at farmers markets can help minimize your waste.

6 Simple Tips to Reduce Waste So Every Day Is Earth Day

Earth Day 2018 is focused on the all-important theme of reducing plastic litter and pollution. Of course, we shouldn't just reduce our plastic footprint, we should try to reduce waste in all shapes, sizes and forms. It's said that the average American generates a staggering 4 pounds of trash every day—but you don't have to be part of that statistic.

Here are six entirely manageable tips and tricks to help you cut waste.

Keep reading... Show less
Popular

Earth Day Tips From the EcoWatch Team

At EcoWatch, every day is Earth Day. We don't just report news about the environment—we aim to make the world a better place through our own actions. From conserving water to cutting waste, here are some tips and tricks from our team on living mindfully and sustainably.

Lorraine Chow, reporter

Favorite Product: Dr. Bronner's Castile soap

It's Earth-friendly, lasts for months and can be used as soap, shampoo, all-purpose cleaner and even mouthwash (but I wouldn't recommend that).

Keep reading... Show less
Popular
Will Rose / Greenpeace

7 Things You Can Do to Create a Plastic-Free Future

By Jen Fela

We're celebrating a huge moment in the global movement for a plastic-free future: More than one million people around the world have called on big corporations to do their part to end single-use plastics.

Now we're taking the next big step. We're setting an ambitious new goal: A Million Acts of Blue.

Keep reading... Show less
Sponsored
Popular

5 Environmental Victories to Inspire You This Earth Day

Planet Earth is at a crisis point. Researchers say we have to begin reducing carbon dioxide emissions by 2020 if we want to meet the temperature goals outlined in the Paris agreement and avoid catastrophic climate change.

The work to be done can seem overwhelming. A survey published this week found that only 6 percent of Americans think we will succeed in reducing global warming.

Keep reading... Show less
Animals
A fin whale surfacing in Greenland. Aqqa Rosing-Asvid / CC BY 2.0

Iceland to Resume Killing Endangered Fin Whales

By Kitty Block

Iceland seems to be the most confused of nations when it comes to whales. On the one hand it attracts international tourists from all over the world to go out and see whales as part of their encounters with Iceland's many natural wonders. On the other hand it kills whales for profit, with some portion of the kill even being fed to some of the same tourists in restaurants and cafes.

Keep reading... Show less
Sponsored
Climate
A.millepora in the Great Barrier Reef. Petra Lundgren, Juan C Vera, Lesa Peplow, Stephanie Manel and Madeleine JH van Oppen

Hope for Great Barrier Reef? New Study Shows Genetic Diversity of Coral Could Extend Our Chance to Save It

A study published Wednesday had some frightening news for the Great Barrier Reef—the iconic marine ecosystem is at "unprecedented" risk of collapse due to climate change after a 2016 heat wave led to the largest mass coral bleaching event in the reef's history.

Keep reading... Show less
Business
Lyft

Lyft Announces Carbon Neutrality Drive

Lyft will make all of its rides carbon neutral starting immediately by investing millions of dollars in projects that offset its emissions, the company announced Thursday.

The ridesharing service, which is part of the We Are Still coalition, provides more than 10 million rides worldwide each week. "We feel immense responsibility for the profound impact that Lyft will have on our planet," founders John Zimmer and Logan Green wrote in a Medium post.

Keep reading... Show less
Sponsored

mail-copy

The best of EcoWatch, right in your inbox. Sign up for our email newsletter!