Other than green: the banks finance oil and coal
Despite pressure from investors and society , banks around the world continue to finance and underwrite bonds issued by oil, gas and coal companies, with fossil fuel bond deals organized by banks for nearly $ 250 billion in the year. 2021, Bloomberg data showed on Monday . If an industry pays interest, there will be those who finance it.
JP Morgan has financed the largest volume of combined loans and bonds so far this year, followed by Wells Fargo, Citi, RBC and Mitsubishi UFJ, according to December 3 data compiled by Bloomberg.
Wells Fargo was the fossil fuel industry's largest lender this year, with most of its exposure to the industry going to corporate loans.
While "Mature" or "Aware" investors for the environment are pushing for Wall Street banks, and virtually all banks globally, to avoid fossil fuels, major banks say that by continuing to finance oil and gas, they are helping the sector to invest in low-carbon energy solutions that would help decarbonise the global energy system. Pecunia non olet.
“It's really important that our customers take steps to innovate and decarbonise, but we also need to bring the profits to commercialize those solutions,” Marisa Buchanan, Global Head of Sustainability at JPMorgan Chase & Co., told Bloomberg. customers must be green, but the bank must make profits, from oil and coal, in order to help them be green.
In May of this year, UN Secretary-General António Guterres said banks should finance low-carbon, climate-resilient projects, not large fossil fuel infrastructures that aren't even cheaper.
In October of this year, rating agency Moody's Investors Service said in a report that in the G-20 nations, financial firms hold $ 22 trillion in loans and investments subject to carbon transition risks. In the meantime, however, these loans generate profits. What are we doing? Do we throw them overboard?
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The article Other than green: banks finance oil and coal comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/altro-che-verde-le-banche-finanziano-petrolio-e-carbone/ on Tue, 07 Dec 2021 07:00:17 +0000.