March, 24 2021, 12:00am EDT
For Immediate Release
Contact:
Lindsay Meiman,Senior U.S. Communications Specialist,lindsay@350.org,us-comms@350.org,+1 347 460 9082,New York, USA
New Report: World's 60 Largest Banks Have Poured $3.8 Trillion Into Fossil Fuels Since Paris Agreement; Climate Groups Sound Alarm as Financing for Fossil Fuel Expansion Continues to Rise
Climate groups sound alarm as fossil fuel financing continues to rise even amidst the global economic downturnRead the report HERE
WASHINGTON
Released today, the 12th edition of the most comprehensive report on fossil fuel bank financing documents an alarming disconnect between the global scientific consensus on climate change and the continued practices of the world's largest banks. This year's report, titled Banking on Climate Chaos 2021, expands its focus from 35 to 60 of the world's largest banks and reveals that in the 5 years since the Paris Agreement was adopted, these banks have pumped over $3.8 trillion into the fossil fuel industry.
The report was authored by Rainforest Action Network, BankTrack, Indigenous Environmental Network, Oil Change International, Reclaim Finance, and Sierra Club, and is endorsed by over 300 organizations from 50 countries around the world. Banking on Climate Chaos names the largest funders of fossil fuels around the world, with JPMorgan Chase the worst overall, RBC the worst in Canada, Barclays the worst in the UK, BNP Paribas worst in the EU, MUFG worst in Japan and Bank of China worst in China. It also concludes that fossil fuel financing was higher in 2020 than in 2016, a trend that stands in direct opposition to the Agreement's stated goal of rapidly reducing carbon emissions with the aim to limit global temperature rise to 1.5degC.
The report demonstrates that, even amidst a pandemic-induced economic recession that resulted in an across-the-board reduction of fossil fuel financing of roughly 9%, the world's 60 largest banks still increased their financing in 2020 to the 100 companies most responsible for fossil fuel expansion by over 10%. These banks have poured nearly $1.5 trillion over the past 5 years into 100 top companies expanding fossil fuels. This includes companies behind highly controversial projects like the Line 3 tar sands oil pipeline and the expansion of fracking on the lands of Indigenous Mapuche communities in Argentina's Patagonia region, which are just two of the nearly 20 case studies featured in the report.
US-based banks continue to be the largest global drivers of emissions in 2020, with JPMorgan Chase remaining the world's worst fossil bank. Chase recently committed to align its financing with the Paris Agreement and yet continues essentially unrestrained financing of fossil fuels. From 2016 through 2020, Chase's lending and underwriting activities have provided nearly $317 billion to fossil fuels, fully 33% more than Citi, the next worst fossil bank over this period.
The worst 10 coal power bankers since the Paris Agreement's adoption were all Chinese, led by Bank of China; the world's biggest bank, ICBC (Industrial and Commercial Bank of China); and China CITIC Bank. Overall funding from the banks in the report to the 30 biggest coal power companies in 2020 fell by 9% from 2019, but remains at a very high level of $39 billion.
The oil and gas sector where banks have made the most policy progress was in the Arctic, by restricting direct financing for projects in the region. Yet JPMorgan Chase, ICBC, China Minsheng Bank, and Barclays remain the biggest funders of companies with major operations in the Arctic since the adoption of the Paris Agreement.
"Facing the prospect of a global recession, investment in coal power infrastructure will become even riskier for borrowing countries and lenders. In the era of the New Development, only by persisting in the continuous improvement of the ecological environment can China truly achieve the development of innovation, coordination, green, open and sharing. Only in this way can China build a prosperous, strong, civilized, and harmonious modern power in the middle of this century. It will only be able to do this with the support and the endorsement of major stakeholders in all fields, and state-owned banks like ICBC play a fundamental role in this pathway," says Yossi Cadan, Global Finance Campaign Manager at 350.org.
The report also examines existing climate policy commitments by banks and finds them grossly insufficient and out of alignment with the goals of the Paris Agreement across the board. Recent high profile bank policies focus either on the distant and ill-defined goal of achieving 'net zero by 2050', or on restricting financing for unconventional fossil fuels. In general, existing bank policies are strongest with regards to restrictions for direct project-related financing. And yet, project-related financing made up only 5% of the total fossil fuel financing analyzed in this report.
The authoring organizations behind this report are united in their demand that respect for Indigenous rights, including the right to Free, Prior, and Informed Consent, and human rights more broadly must be a non-negotiable requirement for all bank financing decisions.
QUOTE SHEET
Rainforest Action Network - Ginger Cassady, Executive Director
"The unprecedented COVID-19 dip in global financing for fossil fuels offers the world's largest banks a stark choice point going forward; they can decide to lock in the downward trajectory of support for the primary industry driving the climate crisis or they can recklessly snap back to business as usual as the economy recovers. U.S.-based banks continue to be the worst financiers of fossil fuels by a wide margin. Going into the Glasgow climate summit at the end of the year, the stakes could not be higher. Wall Street must act now to stop financing fossil expansion and commit to fossil zero, so as to truly align its financing practices with keeping our planet from heating up more than 1.5 degrees."
Indigenous Environmental Network - Tom Goldtooth, Executive Director
"We must understand that by bankrolling the expansion of oil and gas the top banks of the world have blood on their hands and no amount of greenwashing, carbon markets, unproven techno-fixes, or net-zero commitments can absolve their crimes against humanity and Mother Earth. Indigenous lands globally are being plundered, our inherent rights are being violated and the value of our lives has been diminished to nothing in the face of fossil fuel expansion. For the sacredness and the territorial integrity of Mother Earth, these banks must be held accountable for covering the cost of her destruction."
Sierra Club - Ben Cushing, Financial Advocacy Campaign Manager
"Many of the world's largest banks, including all six major U.S. banks, have made splashy commitments in recent months to zero-out the climate impact of their financing over the next 30 years. But what matters most is what they're doing now, and the numbers don't lie. This report separates words from actions, and the picture it paints is alarming: major banks around the world, led by U.S. banks in particular, are fueling climate chaos by dumping trillions of dollars into the fossil fuels that are causing the crisis. Big banks don't deserve a pat on the back if their 2050 pledges are not paired with meaningful 2021 actions to cut fossil financing."
BankTrack - Johan Frijns, Director
"As the date of the crucial Glasgow Climate Summit approaches - and god forbid the global corona crisis prevents the world from meeting to address that other, much bigger existential crisis - we witness one bank after another making solemn promises to become 'net zero by 2050'. There exists no pathway towards this laudable goal of a generation away that does not require dealing with bank finance for the fossil fuel industry right here and now, yet too many current promises lack precisely that; a firm commitment to start severing ties with all coal, oil and gas companies that plan on continuing their climate wrecking activities in the years to come."
Note on methodology:
This report aggregates bank lending and underwriting of debt and equity issuances according to Bloomberg's league credit methodology (which divides credit among banks leading a transaction) to companies with any reported fossil fuel activity according to Bloomberg Finance L.P. and the Global Coal Exit List. The league credit assigned to a bank for a given transaction is adjusted by an approximation of the fossil fuel intensity of the particular borrower or issuer. Draft report findings are shared with banks in advance, and they are given an opportunity to comment on financing and policy assessments.
350 is building a future that's just, prosperous, equitable and safe from the effects of the climate crisis. We're an international movement of ordinary people working to end the age of fossil fuels and build a world of community-led renewable energy for all.
LATEST NEWS
Climate Movement Cheers Michigan AG's Plans to Sue Big Oil
"Pursuing this litigation will allow us to recoup our costs and hold those responsible for jeopardizing Michigan's economic future and way of life accountable," said the state attorney general
May 09, 2024
Advocates of holding fossil fuel giants accountable for their significant contributions to the climate emergency welcomed Michigan Attorney General Dana Nessel's Thursday announcement that she intends to sue the polluting industry.
"Big Oil knew decades ago that their products would cause catastrophic climate change, but instead of doing the right thing they lied about it," declared Richard Wiles, president of the Center for Climate Integrity. "The people of Michigan deserve their day in court to make these companies pay for the massive harm they knowingly caused."
Dozens of municipalities and attorneys general for the District of Columbia and eight states—California, Connecticut, Delaware, Massachusetts, Minnesota, New Jersey, Rhode Island, and Vermont—have already filed climate liability suits against Big Oil in recent years.
"Our 'Pure Michigan' identity is under threat from the effects of climate change," said Nessel, whose state was praised last year for passing clean energy legislation. "Warmer temperatures are shrinking ski seasons in the UP and disrupting the wonderful blooms of Holland's Tulip Time Festival. Severe weather events are on the rise."
"These impacts threaten not only our way of life but also our economy and pose long-term risks to Michigan's thriving agribusiness," she continued. "The fossil fuel industry, despite knowing about these consequences, prioritized profits over people and the environment. Pursuing this litigation will allow us to recoup our costs and hold those responsible for jeopardizing Michigan's economic future and way of life accountable."
The Democratic attorney general's office explained that she is "seeking proposals from attorneys and law firms to serve as special assistant attorneys general to pursue litigation related to the climate change impacts caused by the fossil fuel industry on behalf of the state of Michigan."
The Detroit Newsnoted that "Nessel took a similar tact in suing drugmakers for the opioid crisis, farming out much of the work to outside law firms in Michigan, Texas, and Florida."
According to the newspaper:
Nessel's office is working with other state departments to assess the costs associated with climate change, such as the cost of expanding storm water systems to handle flooding caused by stronger storms, responding to natural disasters, or supporting northern Michigan tourism economies dealing with dwindling ice and snow.
"This is going to be a massive discovery effort to find out exactly what our Michigan damages are now already and what can we expect to see in the future as a result of climate change," she said.
"I don't know that there's a bigger issue facing the state of Michigan than climate change," Nessel told the outlet. "We are talking about billions and billions of dollars in damages and we're already starting to see that on a day-to-day basis. We know this is only going to get worse."
The youth-led Sunrise Movement applauded Nessel's plans and asserted that U.S. President Joe Biden—who is seeking reelection in November—and the Department of Justice "must follow suit."
The group's call echoed similar demands that emerged last week in response to the U.S. Senate Budget Committee's hearing about a three-year investigation into "Big Oil's campaign of deception and distraction."
Keep ReadingShow Less
Critics Compare Biden's Proposed Asylum Rule to 'Failed Trump-Era Policies'
"The Biden administration and Congress must not erect any more unjust barriers to asylum that will sow further disorder and result in irreparable harm," said one migrant rights advocate.
May 09, 2024
Immigrant rights advocates on Thursday slammed the Biden administration's proposal to fast-track the rejection of certain migrants seeking asylum in the United States.
On Thursday the U.S. Department of Homeland Security (DHS) proposed a rule that would empower immigration officials to disqualify certain asylum-seekers during their initial eligibility screening—called the credible fear interview (CFI)—using existing national security and terrorism-related criteria, or bars.
DHS said the rule would apply to noncitizens who have "engaged in certain criminal activity, persecuted others, or have been involved in terrorist activities."
"I urge President Biden to embrace our values as a nation of immigrants and use this opportunity to instead provide relief for the long-term immigrants of this nation."
Homeland Security Secretary Alejandro Mayorkas called the proposed rule "yet another step in our ongoing efforts to ensure the safety of the American public by more quickly identifying and removing those individuals who present a security risk and have no legal basis to remain here."
However, Greg Chen, senior director of government relations for the American Immigration Lawyers Association, argued that while "bars are an important feature of our immigration laws to ensure that dangerous individuals are not allowed into the country," they must be "accurately applied where warranted."
"This change could make the process faster by excluding people who would not be entitled to stay," he noted. "However, due process will likely be eroded by accelerating what is a highly complex legal analysis needed for these bars and conducting them at the preliminary CFI screening."
As Chen explained:
At that early stage, few asylum seekers will have the opportunity to seek legal counsel or time to understand the consequences of a bar being applied. Under the current process, they have more time to seek legal advice, to prepare their case, and to appeal it or seek an exemption. Ultimately to establish a fair and orderly process at the border, Congress needs to provide the Department of Homeland Security with the resources to meet its mission and also ensure the truly vulnerable are not summarily denied protection without due process.
Democratic lawmakers—some of whom held a press conference Wednesday on protecting undocumented immigrants in the U.S.—also criticized the proposal.
"As the Biden administration considers executive actions on immigration, we must not return to failed Trump-era policies aimed at banning asylum and moving us backwards," said Sen. Alex Padilla (D-Calif.), referring to former Republican President Donald Trump, the presumptive 2024 GOP nominee to face President Joe Biden in November.
"I urge President Biden to embrace our values as a nation of immigrants and use this opportunity to instead provide relief for the long-term immigrants of this nation," he added.
One year ago, critics accused Biden of "finishing Trump's job" by implementing a crackdown on asylum-seekers upon the expiration of Title 42—a provision first invoked during Trump administration at the onset of the Covid-19 pandemic and continued by Biden to expel more than 1 million migrants under the pretext of public safety.
Earlier this week, the advocacy group Human Rights First released a report detailing the harms of the policy on its anniversary. The group held a press conference to unveil the report and warn of the dangers of further anti-migrant policies.
"The interviews with hundreds of asylum-seekers make clear that the asylum ban and related restrictions strands in danger children and adults seeking asylum, punishes people for seeking protection, leads to the return of refugees to persecution, spurs irregular crossings, and denies equal access to asylum to people facing the most dire risks," Human Rights First director of research and analysis of refugee protection Christina Asencio said during the press conference.
"The Biden administration and Congress must not erect any more unjust barriers to asylum that will sow further disorder and result in irreparable harm," Asencio added.
On Wednesday, three advocacy groups—Al Otro Lado, the Civil Rights Education and Enforcement Center, and the Texas Civil Rights Project—sued the federal government on behalf of noncitizens with disabilities seeking more information regarding CBP One, the problem-plagued Customs and Border Protection app migrants must use to schedule asylum interviews at U.S. ports of entry.
"We have and continue to see migrants with disabilities facing unlawful discrimination and unequal access to the asylum process due to the inaccessibility of the app," said Laura Murchie, an attorney with the Civil Rights and Education Enforcement Center involved in the case.
"CBP needs to release these documents so we can advocate for and ensure compliance with the law so asylum-seekers with disabilities do not continue to be harmed by CBP's disregard for rights that are guaranteed by federal disability law," she added.
Keep ReadingShow Less
Netanyahu Says Israel 'Will Stand Alone' as Biden Threatens to Withhold Arms
"If we have to, we will fight with our nails," the Israeli prime minister said in response to the American leader's warning against a major Rafah invasion.
May 09, 2024
Israeli Prime Minister Benjamin Netanyahu on Thursday responded to U.S. President Joe Biden's threat to withhold shipments of arms used by the Israel Defense Forces to kill thousands of Palestinian civilians by declaring that his far-right government would continue its assault on Gaza with or without American help.
"If we are forced to stand alone, we will stand alone," Netanyahu said in a video ahead of next week's anniversary of Israel's establishment in 1948, largely via the ethnic cleansing of Palestine's Arabs. "I have already said that if we have to, we will fight with our nails."
Echoing Netanyahu, Israel Defense Forces spokesperson Daniel Hagari said the IDF already has the "necessary weapons" to wage war, "including in Rafah," where over 1 million people forcibly displaced from other parts of Gaza are sheltering alongside around 280,000 local residents, all of them bracing for a full-scale Israeli invasion.
The prime minister's remarks came a day after Biden threatened to withhold bombs and artillery shells from Israel if it launches a major invasion of Rafah—even as critics noted that Israeli forces have already attacked and entered the city. Some accused Biden of walking back a previous "red line" warning against any assault on Rafah.
Common Dreamsreported Tuesday that Biden is delaying shipments of two types of bombs to Israel in order to send a message that the president's tolerance for what he called Israel's "indiscriminate bombing" of Gazan civilians is waning.
However, observers noted that Biden recently signed off on $14.3 billion in emergency armed assistance for Israel atop the nearly $4 billion the key ally already receives from Washington each year. The Biden administration has quietly approved more than 100 arms sales to Israel since October 7, while pushing for billions of dollars worth of additional deals, including advanced fighter jets.
Biden has also repeatedly bypassed Congress to fast-track weapons transfers to Israel as it wages what the International Court of Justice in January called a "plausibly" genocidal war that's killed, injured, or left missing more than 124,000 Palestinians—mostly women and children—since October 7.
The U.S. administration also provides diplomatic cover for Israel's policies and practices in the form of United Nations Security Council vetoes.
Despite all this support—which comes as most election-year voters supporting Biden's Democratic Party believe Israel is committing genocide in Gaza—Israeli National Security Minister Itamar Ben-Gvir on Thursday tweeted, "Hamas ❤️ Biden."
Keep ReadingShow Less
Most Popular