Greenpeace challenges banks over USD 1.4 trn invested in fossil fuels

Greenpeace International has said 24 banks participating in the WEF 2020 here have extended financing worth USD 1.4 trillion to the fossil fuel industry since 2015 Paris Agreement.

In a report titled 'It's the Finance Sector, Stupid', released here, Greenpeace put the blame for the climate emergency at the feet of the banks, insurers and pension funds that participate in Davos summit.

Since the ground breaking Paris summit on climate change, 24 global banks have invested USD 1.4 trillion in the fossil fuel industry, said Jennifer Morgan, Executive Director of Greenpeace International, a non-governmental environmental organisation.

The report said USD 1 trillion could buy 640GW of solar power, more than the current global capacity.

However, financiers on a WEF 2020 panel along with Morgan, argued that the international financial system is fundamentally reshaping itself around how to transition to a net-zero economy (net-zero carbon footprint). They are responding to the demands of their clients as well as directly feeling the heat through, for example, having to reprice the cost of insurance risk.

Mark Carney, Governor of the Bank of England, said: "With major investors, the question is: what is your plan to get to net-zero?"
Two-thirds of questions at bank AGMs are now around these issues, he said, adding: "Everyone knows they need a plan."
What will really cause change is the way we govern businesses, she said, asking: "Why don't we have a financial transaction tax?