Bank finance for renewables stagnates against oil and gas
LONDON, 24 January (Reuters) – More energy is shifting away from fossil fuels to renewable energy, according to a study published on Tuesday bank The share of its financing has changed little over six years, raising questions about how quickly lenders are pushing energy customers to go greener.
According to a report commissioned by environmental groups including the Sierra Club and Fair Finance International, since 2016 renewable energy, for energy activities bank loans and took 7% of the total $2.5 trillion in bond underwriting.
The annual total amount that banks have contributed to renewable energy in 2016 was 23.2 billion 34.6 in 2021 from the dollar billion per dollar, but the amount going to fossil fuels also increased, keeping the share of renewable energy broadly the same.
While the share of renewable energy in financing was 8% last year, in 2021 and 2020in years respectively 10% and 7%.
Ward Warmerdam, a researcher at Profundo, which compiled the data, said, “Banks’ funding of fossil fuels must stop because financing renewables dramatically increases the chance of meeting the world’s and their own climate goals.”
Lenders say they need to finance fossil fuels given global energy needs, but help firms transition to a low-carbon future.
Renewable companies often use private and public funding as well.
“This report does not provide a comprehensive picture of clean energy investment,” said a spokesman for the Glasgow Financial Alliance, a large group of financial institutions, for Net Zero.
The spokeswoman pointed to International Energy Agency analysis suggesting that around 48% of total energy investment between 2021 and 2022 is aimed at low-carbon energy supply.
The report states that JPMorgan, Citi and Barclays have a renewable energy share of 2% between 2016 and 2022, while Royal Bank of Canada has 1%. Citi declined to comment. JPMorgan, Barclays and RBC did not respond to requests for comment.
The study covered 60 of the world’s largest lenders and 377 energy companies. It excluded biomass, nuclear and carbon capture and storage from the definition of renewable energy.
Reporting by Tommy Reggiori Wilkes Editing by Tomasz Janowski
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2023-01-24 09:07:30
Source – reuters
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