March, 24 2021, 12:00am EDT
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
Even amidst the global economic downturn, fossil fuel financing numbers were higher in 2020 than 2016.
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 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 1.5deg Celsius.
The report demonstrates that, even amidst a pandemic-induced 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 land of Indigenous Mapuche communities in Argentina's Patagonia region, which are just two of the nearly 20 case studies featured in the report.
Banking on Climate Chaos 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.
U.S.-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.
Wells Fargo's total fossil financing plunged by a surprising 42% in 2020. As a result, Wells dropped from fourth-worst fossil bank in 2019, to ninth worst in 2020. This is the only time over the past five years that Wells has not been one of the worst four fossil banks. Another surprising result from the 2020 data is that BNP Paribas (whose U.S. subsidiary is Bank of the West, which strongly advertises its supposed responsibility on climate) came in as the fourth-worst fossil bank in 2020. BNP Paribas provided $41 billion in fossil financing in 2020, a huge 41% increase over its 2019 activity. This means the biggest absolute increase in fossil financing last year came from BNP Paribas, despite the bank's strong policy commitments restricting financing for unconventional oil and gas.
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.
This report 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.
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."
Reclaim Finance - Lucie Pinson, Founder and Executive Director
"These numbers expose the hollowness of banks' ever-multiplying commitments to be net-zero or align with the Paris Agreement climate targets. A perfect example can be found in France. Finance Minister Bruno Le Maire is fond of calling Paris the capital of green finance - but this data exposes it as 2020's capital of climate hypocrisy, with four unscrupulous banks making France the largest backer of oil, gas and coal in Europe. BNP Paribas merits singling out as the world's fourth-largest fossil financier in 2020, having funnelled multi-billion dollar loans to oil giants like BP and Total. Nonetheless, it's clear that all banks need to replace empty promises with meaningful policies enacting zero tolerance for fossil fuel developers."
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."
Oil Change International - Lorne Stockman, Senior Research Analyst
"This report serves as a reality check for banks that think that vague 'net-zero' goals are enough to stop the climate crisis. Our future goes where the money flows, and in 2020 these banks have ploughed billions into locking us into further climate chaos. Banks need to be focused on reducing fossil fuel production now, rather than on a far off and insufficient goal in the distant future. The time for half-measures is over."
Methodology note:
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.
The Sierra Club is the most enduring and influential grassroots environmental organization in the United States. We amplify the power of our 3.8 million members and supporters to defend everyone's right to a healthy world.
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'A Corporate CEO's Dream': Labor Unions Blast Trump-Vance Ticket
"This ticket isn't pro-worker or pro-union. It's the billionaire ticket through and through," said one labor leader.
Jul 16, 2024
Leading U.S. unions warned voters on Monday not to be fooled by the pro-worker facade constructed by Republican presidential nominee Donald Trump and his running mate, JD Vance, a Republican senator from Ohio who has opposed
congressional efforts to strengthen organizing rights, allowed corporate lobbyists to influence his legislating, and raked in donations from the elites he claims to despise.
Liz Shuler, president of the AFL-CIO—the nation's largest federation of unions—said in a statement the combined records of Trump and Vance make clear that, if elected, they "would eviscerate unions and empty workers' pockets just to boost the profits of their corporate friends and donors."
"Donald Trump has a miserable record of breaking every promise he's made to working people—from failing to pay his workers and crossing a picket line to his disastrous four years in the White House," said Shuler. "That betrayal would continue if he is reelected—so it's no surprise Trump chose a vice president who will be nothing more than a rubber stamp for that anti-worker vision."
Shuler continued:
Sen. JD Vance likes to play union supporter on the picket line, but his record proves that to be a sham. He has introduced legislation to allow bosses to bypass their workers’ unions with phony corporate-run unions, disparaged striking UAW members while collecting hefty donations from one of the major auto companies, and opposed the landmark Protecting the Right to Organize (PRO) Act, which would end union-busting "right to work" laws and make it easier for workers to form unions and win strong contracts.
"A Trump-Vance White House," she added, "is a corporate CEO's dream and a worker's nightmare."
Service Employees International Union president April Verrett offered a similar assessment of the Trump-Vance ticket, saying that while Vance "may portray himself as a working-class hero," his "record tells another story."
"The truth is that Senator Vance's loyalties lie with the Wall Street bankers and Silicon Valley billionaires who have bankrolled his political career," said Verrett. "Together, Donald Trump and JD Vance will seek to protect the wealthy and corporations while enacting their insidious Project 2025 agenda. There's a stark contrast between Biden-Harris, who have backed workers and taken action to lower prices and raise wages, and Trump-Vance, who side with price-gouging, union-busting corporations."
BREAKING: Donald Trump has selected JD Vance as his running mate.
Vance claims that he's all about taking on elites.
But the donor list from his Senate campaign tells another story. His top donor occupation was CEO. pic.twitter.com/zFrEx9vMKY
— More Perfect Union (@MorePerfectUS) July 15, 2024
The unions' statements came as Republican delegates at the party's convention in Wisconsin—a state that's been
described as a "laboratory" for the GOP's anti-union agenda—formally nominated Trump as their presidential candidate, shortly after an assassination attempt.
GOP delegates also approved their party's platform, which includes the vague promise to put "American workers first" but does not mention the word "union." The nation's union membership rate fell to an all-time low last year thanks to a long-running war on labor rights waged by corporate America and its GOP allies.
The Republican platform contains an ostensibly pro-worker pledge to exempt tips from taxation, a vow that—according to one critic—"appears to be a way for Republicans to change the subject if anyone questions their opposition to raising the minimum wage, which has been stuck at $7.25 for the past two decades."
Despite backlash from within his union, Teamsters president Sean O'Brien delivered a primetime address to the Republican convention Monday night, praising Trump for his supposed willingness to "hear from new, loud, and often critical voices."
But other union leaders expressed a much harsher view of the former president, given that during his first term he stacked federal agencies and courts with opponents of organized labor and worked to gut worker protections. Trump's reelection campaign is backed by at least a dozen billionaires, including the world's richest man, Elon Musk.
"This ticket isn't pro-worker or pro-union," said Sara Nelson, president of the Association of Flight Attendants-CWA, urging workers not to buy the "slick rhetoric" of Trump's running mate.
"It's the billionaire ticket through and through," Nelson added.
The Wall Street Journalreported Monday that Musk intends to commit "around $45 million a month" to a new pro-Trump super PAC. Musk, the CEO of Tesla, seemed to deny the report by posting a meme on his social media platform.
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Jul 15, 2024
Climate campaigners reacted to former U.S. President Donald Trump's selection of Sen. JD Vance as his running mate Monday by highlighting the Ohio Republican's climate denial and strong support for the fossil fuel industry—one of his top campaign contributors.
"Like Donald Trump, JD Vance has proven that he will make it a top priority to roll back climate protections while answering to the demands of oil and gas CEOs," Sunrise Movement communications director Stevie O'Hanlon said in a statement. "Vance is one of Congress' biggest recipients of donations from oil companies."
"JD Vance not only flip-flopped on supporting Trump, he flip-flopped on climate," she continued. "He went from expressing concern about climate change before running for the Senate, to voting to gut [Environmentl Protection Agency] protections and denying that there even is a climate change crisis."
O'Hanlon added: "JD Vance will sell out to the highest bidder, whether that's Trump or the fossil fuel industry. That makes him dangerous. Donald Trump was the worst president for climate in U.S. history. JD Vance will empower Donald Trump to enact even worse damage on our planet in a second Trump administration."
Some of Trump's key first-term Cabinet appointees—including Rex Tillerson, his first secretary of state, and Ryan Zinke, who headed the Interior Department—were former fossil fuel executives or had track records of supporting the oil, gas, and coal industries.
Trump's White House tenure was also marked by an
aggressive rollback of climate and environmental regulations and protections.
Food & Water Watch Action deputy director Mitch Jones said that "just like Trump himself, JD Vance is a fossil fuel backer and climate change denier that poses a serious risk to public health and our environment."
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JL Andrepont of 350 Action asserted that "we are facing a dire need to ward off further climate catastrophe and injustice, so let's be clear: JD Vance is another climate-denying authoritarian who poses massive danger to this country."
"He has praised the horrific Project 2025 plan and said there are 'good ideas in there,'" they continued. "He says he would be totally fine with a federal ban on abortion. And as the effects of climate change accelerate at an alarming pace right in front of our eyes, Vance is a strong supporter of the oil and gas industry who claims that climate change is not a threat."
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Targeting Corporate Landlords, Biden to Unveil National Rent Control Plan
"The rent is too damn high—and rent control is a real fix," one group said, praising the proposal.
Jul 15, 2024
As former U.S. President Donald Trump secured the Republican nomination and announced his running mate on Monday, Democratic President Joe Biden prepared to unveil a proposal that would cap annual rent increases at 5% for tenants of major landlords.
After Biden briefly previewed the proposal during a press conference last week, The Washington Postreported on the planned announcement Monday, citing three people familiar with the matter. The Associated Press separately confirmed the plan.
Biden is set to formally introduce the proposal on Tuesday in Nevada, which "has seen among the biggest explosions of housing costs in the country," the Post noted. "Democrats have grown increasingly concerned that Trump could win the state in November."
The president, who is seeking reelection, will propose taking a tax benefit away from landlords who hike rents by more than 5% annually, according to the reporting. The plan would only apply to the existing housing stock of landlords who own more than 50 units and would require congressional approval—so it is not expected to go anywhere unless Biden wins in November and Democrats secure majorities in both chambers of Congress.
As the newspaper detailed:
The Biden administration is also pushing numerous policies to increase housing construction, through incentives to local governments to change their zoning codes and new federal financial incentives for builders.If implemented, they could bring 2 million new units to the market in addition to the 1.6 million already in the pipeline.
"It would make little sense to make this move by itself. But you have to look at it in the context of the moves they propose to make to expand supply," said Jim Parrott, nonresident fellow at the Urban Institute and co-owner of Parrott Ryan Advisors. "The question is: Even if we get all these new units built, what do we do about rising rents in the meantime? Coming up with a relatively targeted bridge to help renters while new supply is coming online makes a fair amount of sense."
While housing industry representatives criticized the reported proposal, Diane Yentel, president and CEO of the National Low Income Housing Coalition, told The Associated Press that having it in effect in recent years could have helped renters.
"The recent unprecedented increases in homelessness in communities across the country are the result of those equally unprecedented—and unjustified—rent hikes of a couple years ago," she said. "Had such protections against rent gouging been in place then, many families could have avoided homelessness and stayed stably housed."
Other rent control advocates and progressive officials also welcomed the plan, with Kendra Brooks—the first Working Families Party member ever elected to Philadelphia City Council—declaring that "this is exactly the kind of leadership that working families need!"
Jacobin's Branko Marcetic said that "this is huge," particularly considering that "housing has rapidly climbed as a cost-of-living concern (and is also under 30s' most important issue)."
Multiple campaigners and organizations credited housing advocates for pushing rent control at the national level.
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The Debt Collective said, "We will say it over and over again: The rent is too damn high—and rent control is a real fix."
"Rent caps wouldn't be a national policy proposal without tenants unions across the country making it possible through organizing," the group added. "On our way to land without landlords, remember that rent control works. The 99%'s need for a roof over our head should not be 1% profits."
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