Worst Banks Since The Paris Agreement

In 2016, 2017, 2018 (i.e. since the adoption of the Paris Climate Agreement), JP Morgan increased its fossil fuel financing by nearly $200 billion, a third more than Wells Fargo (an increase of about $150 billion). Competition for smaller spots was fiercer. Citi increased its funding by $129 billion and BofA by $107 billion. Morgan Stanley (up $67 billion) and Goldman Sachs (up $59 billion) also had to be disappointed by their 11th and 12th places. In addition to looking at investments, the Banking on Climate Change report evaluated banks for their commitment to ending fossil fuel expansion and financing. The best overall score was Crédit Agricole with 82 points out of 200, while the bank that did the most to limit its oil and gas financing was BNP Paribas with a score of 30.5 out of 120. Each of these companies has faced years of public pressure and warnings from shareholders, investors and regulators about the need to manage climate risks and meet paris climate goals. In the face of the climate crisis, Australia`s big banks can no longer justify financing one of these companies to continue their climate-destroying plans. “Year after year, JPMorgan Chase stands out by far as the world`s worst climate chaos banker. Given this huge impact on people and the planet, Chase and his colleagues must take bold steps to end funding for the expansion of the fossil fuel sector and commit to leaving the sector altogether soon. Fitzroy Resources secured financing for its Carborough Downs coal mine in Queensland in 2018 and 2019, which has expanded since acquiring the mine in 2017. There is little public information about the mine`s reserves and expansion, but we do know that Carborough Downs had 33 Mt of coal reserves, according to a project letter published by Fitzroy Resources prior to Q1 2018.

According to Mining Monthly, Carborough Downs experienced a “100% increase in JORC reserves in the first year under Fitzroy ownership”. As a result, fitzroy was believed to have doubled its reserves from 16.5 mt to 33 mt since the mine was acquired. This seems to coincide with a statement by Fitzroy CEO Grant Polwarth. According to the same June 2018 article from Mining Monthly, Polwarth said, “We have now mined over 2 million tonnes of resources that have never been considered before as we mine the northern reserves and create a future of more than 10 years.” Given that Fitzroy acquired the mine in June 2017, it appears that it took the company about 1 year to extract the 2 million tons of coal that “have never been considered before.” Assuming this is the case, if Fitzroy were to mine 2 Mt over 10 years, it would extract 20 Mt of coal that “has never been considered before.” Calculation of estimated emissions: 16.5 million tonnes of coal x 1,000,000 (million tonnes of coal per tonne of coal) x 30 GJ/t (coking coal) x 92.02 kg CO2-e/GJ (emission factor for coking coal) x 0.001 (kg CO2 to tonnes of CO2) = 45.5 million tonnes of CO2. From January 1, 2016 to December 31, 2019, the big four banks borrowed $7.1 billion for large fossil fuel projects under 54 separate financing contracts. For 42 of these transactions, involving four major banks that credited $5.9 billion, Market Forces identified specific fossil fuel-funded projects and the resulting CO2 emissions made possible by those projects. CommBank and ANZ are clearly the worst, all loans to projects that would allow emissions equivalent to nearly 8 years of Australia`s total greenhouse gas emissions in 2019. However, ANZ and CommBank reduced their loans to expansionary projects from 2018 to 2019, while NAB and Westpac increased those loans. Barclays is one of the companies offering billions of dollars in lines of credit to TransCanada, the company that builds the Keystone XL pipeline. They are also funding Kinder Morgan, which is trying to triple the capacity of the Trans Mountain pipeline, which transports oil from the oil sands to Canada. .

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