Banks to Attend UK's Green Investment Summit Despite Financiang Over £700 Billion in Fossil Fuels Since Paris Agreement

Strategic Insights -

Banks due to attend a green investment summit in the UK have provided over £700 billion of financing for the fossil fuel industry since the 2015 Paris Agreement. The summit, which will feature over 200 investors, aims to "galvanise foreign investment in the UK's green industries of the future" ahead of the United Nations COP26 climate summit. Despite their commitments to reaching net zero emissions by 2050, the banks have been criticized for failing to make more concrete cuts by 2030.

Key Takeaways:

  • Eight of the banks represented at the summit have continued to finance highly polluting coal, oil, and gas through commercial and investment banking in the five years since the Paris Agreement was reached.
  • The eight banks have financed a total of £703.2 billion in coal, oil, and gas between 2016-2020.
  • JPMorgan financed £230 billion in fossil fuels between 2016 and 2020, followed by Citi (£172 billion) and Barclays (£105 billion).
  • The banks also funded high levels of coal funding, including £2.8 billion in 2020, with investment in coal power and coal mining.
  • Analysis of BankTrack data reveals that in 2020 alone, the eight banks funded £129 billion in fossil fuels, including £37 billion from JPMorgan, £35 billion from Citi, and £20 billion from Barclays.
  • The banks' CEOs and senior executives, including Jamie Dimon (JPMorgan), Jes Staley (Barclays), and David Solomon (Goldman Sachs), are attending the summit.
  • NatWest and Lloyds Banking Group have also been criticized for their involvement in the fossil fuel industry, with NatWest financing £9.7 billion in fossil fuels since the Paris Agreement and Lloyds financing £8.7 billion.
  • The International Trade Department has stated that the UK's climate change and environment policies are some of the most ambitious in the world, but critics argue that this does not excuse the banks' involvement in the fossil fuel industry.

Statistics:

  • £703.2 billion: Total amount financed by the eight banks in coal, oil, and gas between 2016-2020.
  • £230 billion: JPMorgan's investment in fossil fuels between 2016 and 2020.
  • £172 billion: Citi's investment in fossil fuels between 2016 and 2020.
  • £105 billion: Barclays' investment in fossil fuels between 2016 and 2020.
  • £129 billion: Total amount financed by the eight banks in fossil fuels in 2020.
  • £37 billion: JPMorgan's investment in fossil fuels in 2020.
  • £35 billion: Citi's investment in fossil fuels in 2020.
  • £20 billion: Barclays' investment in fossil fuels in 2020.
  • £2.8 billion: Amount invested in coal funding by the eight banks in 2020.

Sources:

  • "UK rolling out green carpet for global investment summit" (Gov.uk)
  • "Fossil fuel banks face backlash at UK green investment summit" (Financial Times)
  • "Fossil banks" (BankTrack)
  • "Investigation: Climate-conflicted bank directors in the UK" (DeSmog)
  • "Banks Due At UK’s ‘Green’ Investment Summit ‘Financed £700 Billion in Fossil Fuels Since Paris Agreement’" (DeSmog)