Scope 3 Magazine’s Post

A new a European 🅱🅰🅽🅺🅸🅽🅶 🆂🅴🅲🆃🅾🆁 study concludes: "First, we find 𝐧𝐨 𝐞𝐯𝐢𝐝𝐞𝐧𝐜𝐞 𝐨𝐟 𝐥𝐞𝐧𝐝𝐞𝐫 𝐝𝐢𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭. Net zero banks neither reduce credit supply to the sectors they target for decarbonization 𝐧𝐨𝐫 𝐝𝐨 𝐭𝐡𝐞𝐲 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠 𝐟𝐨𝐫 𝐫𝐞𝐧𝐞𝐰𝐚𝐛𝐥𝐞𝐬 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬. Second, we find 𝐧𝐨 𝐞𝐯𝐢𝐝𝐞𝐧𝐜𝐞 𝐨𝐟 𝐫𝐞𝐝𝐮𝐜𝐞𝐝 𝐟𝐢𝐧𝐚𝐧𝐜𝐞𝐝 𝐞𝐦𝐢𝐬𝐬𝐢𝐨𝐧𝐬 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐞𝐧𝐠𝐚𝐠𝐞𝐦𝐞𝐧𝐭. Borrowers of net zero banks are not more likely to set decarbonization targets or reduce their verified emissions. Our estimates rule out even moderate-sized effects. These results highlight 𝐭𝐡𝐞 𝐥𝐢𝐦𝐢𝐭𝐬 𝐨𝐟 𝐯𝐨𝐥𝐮𝐧𝐭𝐚𝐫𝐲 𝐜𝐨𝐦𝐦𝐢𝐭𝐦𝐞𝐧𝐭𝐬 𝐟𝐨𝐫 𝐝𝐞𝐜𝐚𝐫𝐛𝐨𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧. " ( 'Business as usual: bank net zero commitments, lending, and engagement' * published by the US National Bureau of Economic Research). Is this a surprise? Or just confirming the obvious that scale and speed of transformative action requires far more than voluntary aspirations, such as by Net-Zero Banking Alliance (NZBA), the climate accelerator for United Nations Environment Programme Finance Initiative (UNEP FI) ’s Principles for Responsible Banking (PRB) and the sector-specific alliance for banks under the Glasgow Financial Alliance for Net Zero (GFANZ). So another wake-up call and comprehensive ammunition to create pressure on regulators and the finance sector. #netzero #climateaction #climatecrisis #ESG #sustainability #divestment #renewables

🌍 The 29 largest banks in the G7 countries finance more greenhouse gas-generating assets than Italy, France, Germany and the UK together. The resources injected into some carbon-intensive sectors are particularly important: even if they represent only 6% of the total, they are responsible for half of the total financed emissions, reaching 2.7 billion tons of CO2 (GtCO2).  These figures have so far not shown any significant improvement, despite the commitments made by these countries to limit the funding of fossil fuels. This is underlined by a recently published ReCommon report on 2022 data, the latest available. However, something is also beginning to move at the level of large credit institutions. Crédit Agricole and BNP Paribas, two of the banks that provide the most loans, investments and insurance subscriptions to companies and carbon-intensive projects, have just announced a significant change in policy, discontinuing funding for conventional oil and gas projects. #SENnews #environmnent #globalwarming #greeneconomy #solar #eolic #energy #greenenergy #solarenergy #windenergy #sustainable #sustainabledevelopment

📊 The 29 largest banks in the G7 countries finance more greenhouse gas-generating assets than Italy, France, Germany and the UK together. The resources injected into some carbon-intensive sectors are particularly important: even if they represent only 6% of the total, they are responsible for half of the total financed emissions, reaching 2.7 billion tons of CO2 (GtCO2).  These figures have so far not shown any significant improvement, despite the commitments made by these countries to limit the funding of fossil fuels. This is underlined by a recently published ReCommon report on 2022 data, the latest available.  However, something is also beginning to move at the level of large credit institutions. Crédit Agricole and BNP Paribas, two of the banks that provide the most loans, investments and insurance subscriptions to companies and carbon-intensive projects, have just announced a significant change in policy, discontinuing funding for conventional oil and gas projects. #SENnews #environmnent #globalwarming #greeneconomy #solar #eolic #energy #greenenergy #solarenergy #windenergy #sustainable #sustainabledevelopment

Barclays updated its climate change strategy, focusing its capital and resources on supporting energy companies to decarbonize and transition towards a low-carbon economy. The new strategy includes the introduction of a Transition Finance Framework and a new Energy Transition Group. With this approach, Barclays aims to accelerate the transition to a sustainable future and support the energy sector in achieving their climate goals. Read more about the new strategy and framework here: https://lnkd.in/gTwecJ3Q #Barclays #ClimateChange #EnergyTransition #Sustainability

#RBC Bank adds #DecarbonizationFinance category for #HardToAbate sectors. Includes eligible #decarbonization activities to support clients' #emissions reduction. Eligible activities include #lowcarbon fuels, industrial #electrification, #methane reduction & #carboncapture. #TransitionPlanning should be '1.5 degree aligned' or 'emerging' wrt readiness. Spotlight sectors are #agriculture, #oilandgas, #energy, #power, #realestate & #auto. Useful example of #transitiontaxonomy at the level of a #bank. The update is made to its #SustainableFinance framework, published alongside 2023 #Climate Report.

Financial institutions have a significant role to play in the transition to a low carbon economy. Efforts from large financial groups such as ING are great news and reflect a strong commitment towards stated targets, however, from an industry perspective, such efforts can be diluted if other lenders are willing to take the space left and increase financing towards new projects with high environmental footprint. This illustrates why consistent regulatory frameworks across geographies are important. Global regulatory fragmentation slowdowns the transition to a more sustainable environment. As the window of opportunity to achieve the Paris Agreement goals is closing, promoting the transition to a low-carbon economy must be an urgent industry priority. #sustainablefinance #energytransition #bankingregulation #ESG #financialinstitutions

#Barclays today publishes a revised #ClimateChange Statement to progress its climate strategy and continues its focus on clients actively engaged in the energy transition. Following Barclays’ commitment to finance $1trillion of Sustainable and Transition Finance by 2030, Barclays also releases a Transition Finance Framework to support us to meet that target and facilitate the transition finance needed to decarbonise high-emitting sectors.

The World Bank 2023 report reveals #carbonpricing revenues have soared to a record $104 billion 😮[https://lnkd.in/gc74_Jcz]! This significant increase reflects the expanding adoption of #carbontaxes and #emissionstradingsystems (#ETS) across various countries. Notably, the European Union's ETS and China's national carbon market have been major contributors. These revenues are being strategically reinvested into #renewable #energy projects, #energyefficiency improvements, and other #green initiatives 👏 💪. Effective use of these funds is essential for achieving #netzero targets and fostering #sustainable #economic growth. As more nations implement and refine carbon pricing mechanisms, we can expect further advancements in reducing global #carbonemissions, hopefully sooner rather than later 😅. This record-breaking revenue milestone does somewhat highlights the crucial role of #carbonpricing in driving #climate action and funding the #transition to a #sustainable future. #CarbonPricing #ClimateAction #Sustainability #RenewableEnergy #ESG #WorldBank

🏦Banks' Green Financing Isn't Enough🌱 Massive investments will be required to replace the current environmentally destructive economy and build a new sustainable one. For the energy sector alone, the IEA projects that investments in clean energy and fossil fuels need to reach a 10-to-1 ratio by 2030. As part of their net-zero commitments, banks have made headlines for committing to mobilize billions to trillions of dollars towards green and social goals. We find that clean energy has been the largest category of green finance, with banks providing or facilitating finance toward, for example: 🔋 Renewable energy 🚌 Clean transportation ⚡ Energy efficiency But despite their headline-grabbing goals and reported progress, the banks we analyzed have averaged a 1.3-to-1 ratio of green to fossil fuel finance since they began reporting their green finance numbers. Other studies have found similarly low ratios. This scale is still far below the 10-to-1 ratio needed. More on why banks aren't on track to net zero👉 https://bit.ly/3SLfRnu #greeneconomy #climatefinance #climatechange #banks #sustainability

BNP Paribas climate report 2024 is live ! This is the third climate alignment publication since the foundation of the Net Zero Banking Alliance in April 2021 where BNP Paribas along with other 40 banks committed to align their financings on net zero carbon pathways by 2050 or sooner. Since then a hundred of other banks joined the alliance which covers today more than 40% of global banking assets and 44 countries. This report details the bank's third round of sectoral climate targets including shipping, aviation and Commercial Real Estate and an update of the other sectors trajectories. 💡 The Group commits to reduce : - Shipping portfolio emission intensity (Annual Efficiency Ratio) by at least 23% - Aviation financing portfolio emission intensity by at least 18% - Commercial real estate portfolio emission intensity by at least 31% by 2030 compared to end of 2022 level. 💡O&G sector targets have been reinforced with a new commitment on financed emissions reduction by 70% (2022-2030) covering both operational (upstream and refining) and final use emissions . With this report, all the NZBA sectors have been reviewed. Many thanks and congratulations to the team that worked hard for more than 12 months to develop these metrics and approaches, implement them and draft the report Laurence Pessez Sébastien Dessillons Viktor Ivanov Nathalie Jaubert Florent Delgoulet, SCR Pol Grisart Thai-Nhiên Nguyen Dinh Do Anass MAJJI Aymeric Wang Xiao Wei Yann LEFEUVRE Alexandre Vincent Thibault Berlizot David Challamel Vincent Aniort Amira Manai Louis Chenat Guillaume Régnier Asseil Benchekroun Alexis B. Omar Mokhtar #Racetozero #NZBA #Climatetransition #climatechange https://lnkd.in/eHh5kuig