Australia's big four banks have significantly increased financing for new fossil fuel projects, according to a report by environmental finance group Market Forces. ANZ, Commonwealth Bank, Westpac, and NAB have provided direct project finance for 17 new fossil fuel projects since committing to the Paris climate target.
The report found that none of the big four banks have invested in new coal projects since 2015, but lending to new oil and gas projects surged by 50% in 2017 to $2.265 billion, up from $1.509 billion the previous year. ANZ topped the list with $905 million, a 93% increase from 2016, including investments in gas fields in North Sumatra and the Ichthys field off northern Australia.
Market Forces head of research Jack Bertolus said the banks' shift from coal to oil and gas undermines their green credentials. 'It's all well and good to commit to two degrees, but you've got to back it up with action,' he said. The report estimates the 17 projects will enable 4.9 billion tonnes of CO2 emissions over their lifetimes, more than five times Australia's emissions reduction target.
Bertolus criticized the banks for hypocrisy, saying funding oil and gas is inconsistent with limiting climate change. NAB performed best among the big four but still invested more in fossil fuels than renewable energy. ANZ and Commonwealth Bank faced particular criticism for their fossil fuel funding.
ANZ stated it supports the goal of limiting climate increase to 2°C and is playing its part in the transition to a decarbonized economy. Commonwealth Bank said its coal funding has been trending down and described gas as a transition fuel.
