Australian banks lending billions to fossil fuel projects despite supporting emissions reductions, analysis suggests

(The Guardian, 29 May 2023) Big four have pledged to align business practices with Paris agreement but loophole allows them to fund sector, activist group says

Australia’s big banks have loaned more than $13bn for fossil fuel projects over the past two years even as they publicly advocate for emissions reductions, a new report suggests.

Analysis by environmental activist group Market Forces has found that while Australia’s major banks largely avoid providing direct project finance to new coal, oil and gas projects, they do fund corporate entities that develop the

Market Forces said the financing arrangements represented a loophole that enabled lenders to bankroll fossil fuel production while claiming not to directly support new projects.

“Customers are worried their banks are hiding behind a smokescreen, claiming to be committed to net zero by 2050 while funding new fossil fuel developments that would lock in decades of emissions,” said Market Forces acting chief executive, Will van de Pol.

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The Guardian, 29 May 2023: Australian banks lending billions to fossil fuel projects despite supporting emissions reductions, analysis suggests