Banks have financed fossil fuels with 3.8 trillion dollars in five years

The 60 largest banks in the world have not yet put an end to financing for fossil energy sources. The contribution of private finance to the fight against climate change is fundamental. WATCH THE VIDEO

According to the NGO Banking on Climate Chaos, the 60 largest banks in the world financed the fossil fuel sector for 3.8 trillion dollars between 2016 and 2020. The report highlighted that the trend is accelerating, putting the achievement of the objectives on limiting global temperature rise, which are being discussed at COP26 in Glasgow.

Among the banks that have financed the most polluting companies would be JPMorgan Chase, with 317 billion dollars, followed by Citibank with 238 billion and Wells Fargo with 233.

The two largest Italian banks also appear in the ranking – in the lower part of the ranking: Unicredit with 31.4 billion and Intesa Sanpaolo with 13.7. The Milanese bank has announced an end to its coal loans by 2028, while Intesa wants to eliminate credits for coal mining by 2025.

Yet private funding is key to the ecological transition needed to avoid climate disaster. According to economists’ estimates, between 50 and 100 trillion dollars of additional investment will be needed by 2050.

Of this Simona Merzagora (Managing Director of NN Investment Partners), Roberto Bianchini (director of the Climate Finance Observatory of the School of Management of the Politecnico di Milano) e Sarah Varetto (EVP communication and Sky sustainability) discussed during the episode of Sky TG24 Business on 12 November 2021.