Some of the world’s leading banks provided more than twice as much finance for fossil fuels between 2021 and 2024 as for sustainable alternatives, a new study said recently.
the study by Reclaim Finance and partners such as WWF, Urgewald, and Rainforest Action Network said ‘the biggest 65 banks are not on track when it comes to financing the energy transition.’ Top global banks such as HSBC, JP Morgan, and Santander had between 2021 and 2024 allocated only $1,368 billion ‘for sustainable power such as solar, wind, and related infrastructure … while $3,285 billion was allocated to fossil fuels,’ it said. ‘This.. means for each dollar allocated to fossil fuels, just 42 cents went to sustainable alternatives,’ it said.
the study said US and Canadian banks provide four times more financing for fossil fuels than for sustainable alternatives.
institutions in Asia and Europe were better, but still ‘well below’ levels needed for the energy transition.
the study quoted UN Secretary General Antonio Guterres as saying this year that ‘the (energy) transition is not yet fast enough or fair enough.’