Rainforest Action Network’s Post

🚨 New ShareAction research finds that banks' incoherent climate targets are setting them up to miss net zero: 👉 We found that 18 out of 20 banks such as HSBC, Barclays and BNP Paribas, are *not* on track to meet the $10 to every $1 ratio of clean energy to fossil fuel investment that the International Energy Agency (IEA) says is needed by 2030. 👉 Even some of the largest, most ambitious-sounding green finance targets are in reality very small relative to a bank’s size.  For example, HSBC has set one of the largest targets in our sample in absolute terms, but at 1.8% of the bank’s total assets it is lower than the median target (2.4%). Barclays target is equivalent to ING's target in absolute terms, but it is half the size relative to total assets (3.2% vs 5.9%). 👉 It is not clear how banks' sustainable finance and decarbonisation targets fit together: while all 20 banks have set at least one sectoral decarbonisation target, only nine banks have also set one for sustainable finance that clearly illustrates how they are funding sectors that are crucial for a successful transition, such as renewable power and green technologies. Come to our webinar on 26/11, 15.00-16.00 GMT to learn more: https://lnkd.in/euiuTAqT. We will cover key insights in the report and will be joined by speakers from RMI and Reclaim Finance - ONG for a discussion on target-setting in the banking sector. Read the full report below 🔽 https://lnkd.in/ehFVn6Hk

Constant wave of negative signals in sustainable finance, one truth remains clear: the energy transition is gaining momentum - driven not just by policies but by economics. As costs of renewables and clean tech continue to fall, the financial sector faces a critical choice: evolve their climate strategies or risk being left behind. My colleague Katrina White elegantly put together political and public sentiment shift on sustainable finance and the impact of the market here (https://lnkd.in/gTJ-sCZM) for BNEF Subscribers. Question isn't if change will happen - it's whether banks will go with it or lag behind.   #ClimateStrategy #SustainableFinance #BloombergNEF #EnergyTransition

New Year's Resolution. If you are not on track to meet your goals, simply remove the goal altogether. "The firm recently revised its interim financed emissions targets, based on its assessment that the global economy and policy is not currently on track with the ambition to limit the global temperature increase to 1.5°C above pre-industrial levels, which was the basis of its prior targets."

Leaving the alliance is largely symbolic. It is worth noting that almost all banks leaving are American. The US banks all leaving seem to be responding to political pressures inside the country with the Republicans and Trump taking control in 17 days. All of these institutions will need to continue their efforts towards net zero and the transition to a more sustainable economy to remain globally relevant and competitive. The EU regulations require that they comply with EU rules or they can no longer do business in the EU. This is the same for almost all markets outside the United States. This will place the US further behind the rest of the world in a sustainable transition. China and most of the Arabian Gulf Nations have placed more meaningful rules in their markets while the US peddles backward. The US banks will make symbolic moves to the incoming administration but will be forced to continue their strategies towards a more sustainable economy or risk becoming largely irrelevant outside the country. Quitter l’alliance est en grande partie symbolique. Il convient de noter que presque toutes les banques qui se retirent sont américaines. Ces banques semblent répondre à des pressions politiques internes aux États-Unis, alors que les Républicains et Trump prennent le contrôle dans 17 hours. Toutes ces institutions devront poursuivre leurs efforts en faveur de la neutralité carbone et de la transition vers une économie plus durable pour rester pertinentes et compétitives à l'échelle mondiale. Les réglementations européennes exigent qu'elles se conforment aux règles de l'UE, faute de quoi elles ne pourront plus exercer d'activités dans l'Union européenne. Il en va de même pour presque tous les marchés en dehors des États-Unis. Cela risque de placer les États-Unis encore plus en retard par rapport au reste du monde dans la transition durable. La Chine et la plupart des nations du Golfe arabique ont adopté des règles plus significatives dans leurs marchés, tandis que les États-Unis font marche arrière. Les banques américaines effectueront des gestes symboliques en direction de la nouvelle administration, mais elles seront contraintes de continuer à mettre en œuvre leurs stratégies en faveur d'une économie plus durable, sous peine de devenir largement insignifiantes en dehors des États-Unis.

After rapidly expanding from 43 banks at launch to over 140 banks representing $74 trillion in 2024, members of the group have have come under significant pressure, particularly from Republican politicians in the U.S., who have been warning financial institutions including banks, insurers, asset owners and investors of potential legal violations from their participation in climate-focused alliances and of plans to exclude the companies from state business, as part of a broader anti-ESG political campaign.

It is promising to see a growing number of financial institutions (FIs) leveraging their influence as owners or allocators of capital in support of the net-zero transition across the real economy. More than 120 FIs are leading by example by already having SBTi-validated near-term climate targets, with more than 200 committed to join them in the near future. The draft FI Net-Zero Standard, currently out for public consultation, lays out a framework for FIs to drive further action to 2050, in line with climate science. Setting and acting upon science-based targets mitigates corporates and FIs' climate-related transition and physical risks, which in turn may support lower cost of financing and more favourable valuations. https://lnkd.in/eMKx5r8v

EIB is using the standard bank climate playbook: Say you are ‘green’, make up metrics to ‘prove’ it. Then, cry about ‘reputational disaster’ when asked to hold yourself accountable to your own claims. Focus on lobbying vs addressing bank climate risks. https://lnkd.in/g-zWxNw4

🌍 𝗚𝗹𝗼𝗯𝗮𝗹 𝗖𝗮𝗿𝗯𝗼𝗻 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗛𝗶𝘁𝘀 $𝟭𝟬𝟬 𝗕𝗶𝗹𝗹𝗶𝗼𝗻 𝗠𝗶𝗹𝗲𝘀𝘁𝗼𝗻𝗲! 🌍 The World Bank reports that 𝗴𝗹𝗼𝗯𝗮𝗹 𝗰𝗮𝗿𝗯𝗼𝗻 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗿𝗲𝘃𝗲𝗻𝘂𝗲𝘀 𝗵𝗮𝘃𝗲 𝗿𝗲𝗮𝗰𝗵𝗲𝗱 𝗮 𝗿𝗲𝗰𝗼𝗿𝗱-𝗯𝗿𝗲𝗮𝗸𝗶𝗻𝗴 $𝟭𝟬𝟬 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 in 2023. This historic milestone signals increased momentum in using carbon pricing as a tool to curb emissions and incentivize greener practices worldwide. Key Highlights: - 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱 𝗔𝗱𝗼𝗽𝘁𝗶𝗼𝗻: More governments and regions are implementing carbon taxes and emissions trading systems (ETS) as part of their climate strategies. - 𝗦𝗲𝗰𝘁𝗼𝗿 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻: The reach of carbon pricing has broadened, with more industries now included, helping drive emissions reductions across multiple sectors. - 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗥𝗲𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁: Many countries are channeling these revenues back into climate resilience projects, clean energy programs, and just transition initiatives, amplifying the positive impact on communities. As the world intensifies efforts to meet climate targets, carbon pricing continues to be a crucial lever for encouraging sustainable growth and decarbonization. #ClimateAction #CarbonPricing #Sustainability #NetZero #WorldBank For the full report, check out the details here: https://shorturl.at/P0tik

Bank Of America Flags Liquidity Challenges in Carbon Markets. There is also a new decision will create a New Collective Quantified Goal (NCQG) for climate financing, which will replace the earlier fixed target of $100 billion per annum. Will COP29 Usher in a New Era of Climate Finance? Learn more about climate action from developing countries >> https://lnkd.in/gQpVWgTb #cop29 #bankofamerica # #batterymetals #nickel #lithium #carboncredits #carbonemissions #carbonoffsets #carbonprices #carbonpricing #carbonscapture #carbonmarkets #carbonnews #carbonpermits #carbonprices #carbonpricing #carbonremoval #ccs #ccus #cdr #climatechange #cleanenergy #decarbonization #emissionsreduction #energytransition #esg #greenhydrogen #ghgemissions #netzero

In an insightful article for The Economic Times , Shailesh Tyagi, Partner and Sustainability & Climate Leader, Consulting, Deloitte South Asia, discussed the pivotal role banks play in addressing climate change. As major contributors to greenhouse gas emissions through their financed activities, banks must reassess their investment portfolios and loan practices to align with climate targets. To keep global warming below the critical 1.5-degree threshold, a comprehensive global reset is essential. Banks must redirect investments from fossil fuels to renewable energy. Between 2016 and 2020, global banks funnelled over US$2.7 trillion into fossil fuel industries. However, several major banks are now committed to phasing out and ceasing financing new fossil fuel projects, demonstrating a strong commitment to sustainability. Read his authored article here: https://deloi.tt/45zwzLM #Greenhouse #GlobalWarming #FossilFuel #sustainability