(3 Minutes Read)
BNEF’s report comes as banks back away from the industry’s largest climate-finance alliance, raising new questions about their long-term commitment to addressing climate change. All the banks, including JPMorgan Chase & Co and Citigroup, have said they will continue to help clients transition their businesses toward a lower-carbon future.
The world’s largest banks are showing little progress when it comes to their promise of helping the world avoid the worst consequences of global warming.
According to researchers at BloombergNEF, the ratio of spending on low-carbon infrastructure relative to fossil fuels needs to reach 4 to 1 by 2030 to limit climate change. At the end of 2023, the so-called energy-supply banking ratio, which includes debt and equity underwriting, was 0.89 to 1, up from 0.74 in 2022 and 0.78 in 2021.
BNEF’s report comes as banks back away from the industry’s largest climate-finance alliance, raising new questions about their long-term commitment to addressing climate change. All the banks, including JPMorgan Chase & Co and Citigroup, have said they will continue to help clients transition their businesses toward a lower-carbon future.
Read Also:
The latest BNEF data has some promising signs. It shows that investment in low-carbon energy surpassed capital flows into oil, gas, and coal projects for the first time, and bank financing for fossil fuels fell in 2023. However, part of the reason for the decline in financing was China, where more companies switched to loans from bonds — and data on loans is harder to nail down.
Arabic
Chinese (Simplified)
Danish
English
French
Hindi
Italian
Norwegian
Portuguese
Russian
Spanish
Swedish