OpeOluwani Akintayo
with agency report
Lagos — Despite repeated calls by the International Energy Agency, IEA for funding to cease to new fossil fuel projects to tackle global warming, a report says world’s top banks have kept funds flowing.
World’s top banks provided $742 billion in finance to the fossil fuel industry in 2021, little changed on the prior year with $750, according to a report by Reuters, quoting Banking on Climate Chaos report, authored by NGOs including Rainforest Action Network, BankTrack and Oil Change International.
Last year, $185.5 billion was provided to the 100 companies doing the most to expand production.
While overall lending was little changed from the prior year’s $750 billion, it remained higher than in 2016 and 2017, even though the world economy is still recovering from the COVID pandemic, the report said.
Overall lending to the fossil fuel sector remained dominated by North American banks including JPMorgan, Wells Fargo, Scotiabank, and RBC- all of which increased their financing over 2021, the report said.
While coal, oil and gas have been described as the leading causes of man-made greenhouse gas emissions, most leading banks have pledged to reach net-zero emissions across their financing by 2050.
For tar sands, which require high levels of energy to extract oil, financing rose 51% to $23.3 billion, the report said, led by Canadian banks including TD.
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