Bank finance for cleaner energy grows, but still lags fossil fuels - report

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Banks gave 81 cents in financing support to low carbon energy supply for every dollar they provided to fossil fuels in 2021, a report showed on Tuesday, but they will need to ramp up their commitments much further for the world to hit its climate goals.

The bank financing ratio, of 81 cents to $1, was below the global energy supply investment ratio of 90 cents to $1."While a bounce in fossil-fuel investment is expected to counter the disruption caused by Russia’s invasion of Ukraine, the underlying economics of low-carbon energy supply mean its growth will be sustained," said BloombergNEF CEO Jon Moore, noting 2022's 15% rise in low carbon energy supply investment.

Individual banks' financing ratios varied. The Royal Bank of Canada had a 0.4 ratio and JP Morgan 0.7, against BNP Paribas' 1.7 and Deutsche Bank's 2.2, according to BloombergNEF, which said differences reflect geographic focus, client bases and strategies.The report's findings differ from another studyBloombergNEF said its research covered financing from far more banks than other studies.

 

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