The share of bank finance going to renewable energy rather than fossil fuels has changed little in six years, raising questions about how fast lenders are pushing energy clients to become greener, according to research published yesterday.
Since 2016 renewable energy has taken 7 percent of US$2.5 trillion in bank loans and bond underwriting for energy activities, according to a report commissioned by environmental groups including Sierra Club and Fair Finance International.
The total annual sum banks have facilitated into renewable energy rose to a high of US$34.6 billion in 2021, from US$23.2 billion in 2016, but the amount going to fossil fuels increased too, keeping renewables’ share broadly the same.
Photo: Reuters
Last year the share of renewable energy in funding was 8 percent while in 2021 and 2020 it stood at 10 percent and 7 percent respectively.
“Banks’ financing to fossil fuels should be phasing out as financing to renewables increases drastically to have any chance of reaching the world’s — and their own — climate goals,” said Ward Warmerdam, researcher at Profundo, which compiled the data.
Lenders say they must finance fossil fuels given global energy needs, but that they are helping firms transition to low-carbon future.
Renewable companies often tap private and government finance too, they added.
“This report does not provide a comprehensive view of clean energy investment,” said a spokesperson for The Glasgow Financial Alliance for Net Zero, a major grouping of financial institutions
The spokesperson pointed to analysis from the International Energy Agency which suggested that between 2021 and last year around 48 percent of total energy investment went to low-carbon energy supply.
JPMorgan Chase & Co, Citigroup Inc and Barclays PLC’s renewable energy share was 2 percent between 2016 and last year and the Royal Bank of Canada’s 1 percent, the report said. Citi declined to comment. JPMorgan, Barclays and RBC did not respond to requests for comment.
The research covered 60 of the world’s biggest lenders and 377 energy firms. It excluded biomass, nuclear and carbon capture and storage from its renewable energy definition.
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
Tokyo Electron's Taiwan unit today said in a written response that it respects the judicial process, takes the court ruling seriously and would not appeal in the Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) trade secrets case. Last month, a court fined the Taiwan unit of Japan's Tokyo Electron NT$150 million (US$4.74 million) in a case involving trade secrets related to TSMC's sensitive chip technology.
ROUGH RECORDS: Bonds in Japan, as well is in New Zealand, Australia and the US, are seeing the effects of a nervy market as stock exchanges across Asia edge down A deepening slump in Japanese government bonds added fuel to the selloff in global debt markets as rising oil prices stoked inflation fears and pushed yields to multi-decade highs. Japan’s 30-year yield yesterday surged as much as 20 basis points to the highest level since the tenor’s debut in 1999, before paring some of the move. Shorter-maturity Japanese debt was also under pressure, underscored by weak demand at a sale of five-year notes that offered a record-high coupon of 2 percent. Concerns over inflation and government spending rippling through markets including the US, Australia and New Zealand are being amplified in Japan,
Wall Street is licking its chops over an unprecedented slate of massive initial public offerings (IPOs) set to arrive in the coming months, beginning with Elon Musk’s Space Exploration Technologies Corp (SpaceX) next month. That is expected to be followed by artificial intelligence (AI) rivals OpenAI and Anthropic PBC. The trio of mega listings, each eyeing valuations around US$1 trillion or more, constitutes a heady period of elevated risk and reward. SpaceX is targeting an IPO that would raise up to US$80 billion — about double the funds generated from all IPOs last year. OpenAI and Anthropic are eyeing IPOs raising US$60 billion. “We’re
RSS