Bank lending to fossil fuel industry down 9per cent in COVID-hit year

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The world's biggest banks cut lending to fossil fuel firms by 9per cent in 2020 as a result of the pandemic, although funding has still risen over ...

The world's biggest banks cut lending to fossil fuel firms by 9per cent in 2020 as a result of the pandemic, although funding has still risen over the past five years, a report showed on Wednesday.

The 60 largest banks lent more than US$750 billion to 2,300 fossil fuel companies in 2020, down from US$824 billion in 2019, according to a report by Rainforest Action Network, Reclaim Finance, Oil Change International and other non-governmental organisations .But the report said the fall, driven by record low levels of industry investment in the second half of 2020 as the pandemic hammered fuel demand, followed annual rises of 4.4per cent-5.

"Despite this significant drop from 2019 to 2020, the overall trend of the last five years is one heading definitively in the wrong direction," the report said.

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