May 21, 2024

Seventeen banks are in favor of phasing out fossil energy

© GABV / Representatives of Banks to Exit Fossil Fuels

The global effort to phase out fossil fuels continues to grow

A group of seventeen leading banks from the Global Alliance for Banking on Values ​​(GABV) have joined the push for a fossil fuel ban treaty. They are leading a growing number of financial institutions to join the call for a deal, marking a significant step forward in global efforts to tackle the extraction and use of oil, gas and coal – the root cause of the climate crisis.

GABV is the world’s most socially and environmentally responsible bank network. GABV members supporting the agreement include Triodos Bank, the first bank in the world to sign the agreement. The following banks support efforts to phase out fossil fuels:

1. Amalgamated Bank (USA)
2. Banca Etica (Italy, Spain)
3. Pangosol (Bolivia)
4. Beneficial State Bank (USA)
5. Centenary Bank (Uganda)
6. Clearwater Credit Union (USA)
7. Climate First Bank (USA)
8. Ekobanken (Sweden)
9. Finca DRC (Democratic Republic of Congo)
10. Mercure Cooperative Bank (Denmark)
11. NMB Bank (Nepal)
12. Summit Credit Union (USA)
13. Sunrise Banks (USA)
14. Triodos Bank (Netherlands, Belgium, United Kingdom, Spain, Germany)
15. Unity Trust Bank (UK)
16. Vancity (Canada)
17. Vdk Bank (Belgium)

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A global campaign to phase out fossil fuels

The Global Fossil Fuel Nonproliferation Treaty Initiative aims to accelerate the transition to renewable energy for all, end the expansion of coal, oil and gas production, and phase out existing production equally. The deal reflects what science is saying about tackling the climate crisis.

This proposition has gained traction worldwide. It recognizes the need for urgent action to halt the proliferation and phase-out of coal, oil and gas, supported by various sectors – key contributors to the rapidly accelerating climate emergency and rising inequality. Banks joins other major organizations, such as the World Health Organization, the European Parliament and the emerging bloc of 12 countries, that are already calling for a new international agreement to phase out oil, gas and coal.

Although the Paris Agreement sets an important global climate target, many governments continue to approve new coal, oil and gas projects. UNEP’s 2023 Emissions Gap report warns that fossil fuel extraction programs are undermining the world’s chances of meeting our global climate goals. Despite their climate commitments, the report shows governments plan to produce 110% more fossil fuels than limit warming to 1.5 degrees Celsius by 2030.

Role of Banking Sector

According to Banking on Climate Chaos, global banks have committed $5.5 trillion to fossil fuels since the Paris Agreement was signed. A recent report by Topo Finance found that the largest banks and asset managers in the US, if they were a country, would be the world’s third-largest issuer, behind China and the US.

At the 2021 UN climate change conference in Glasgow, COP26, major Western banks committed to invest in green initiatives to reduce their carbon footprint and achieve net zero emissions by 2050. Despite these commitments, the ratio between bank financing of low-carbon energy projects and fossil fuels remains below target, Bloomberg NEF research shows. In addition, banks with net-zero emissions goals have lent heavily to oil, gas and coal companies as they expand their fossil fuel-related operations.

David Reiling, Chairman of GAPV and CEO of Sunrise Banks, explains that the global financial sector must play a key role in integrating the economy and phasing out fossil fuel production. “The Fossil Fuel Treaty is a binding agreement that shows that companies are willing and ready to make this commitment. By signing this treaty, we are leveling the playing field and creating a global and fair transition to meet our commitment to zero phase. By 2050, these seventeen GAPV members I appreciate the pioneering role.
Ali Sheridan, Director of Key Partnerships at the Fossil Fuel Non-Proliferation Treaty Initiative, emphasized the importance of the financial and corporate sectors joining in the call for a Fossil Fuel Non-Proliferation Treaty: “The collective support of these banks is a testament to the fund. The sector, especially the most progressive banks, are key players in addressing the climate crisis.” They have the opportunity to be at the forefront of creating a fair and sustainable future, ensuring that no one is left behind and fostering the global, multi-stakeholder collaboration needed to secure a clean, green and honest future for all.

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More than 3,000 scientists and academics, 101 Nobel Prize winners, hundreds of health professionals, thousands of religious organizations, growing indigenous organizations and youth activists, more than 100 city and regional governments, more than 600 members of parliament and growing worldwide. Many organizations have already called for an agreement to phase out fossil fuels and accelerate a just energy transition.

About GABV

The Global Alliance for Banking on Values ​​(GABV) is a network of independent banks that use finance for sustainable economic, social and environmental development. Their shared goal is to transform the banking system so that it is more transparent, supports economic, social and environmental sustainability and serves the real economy. GABV has 70 members and operates in 45 countries in Africa, Asia-Pacific, Latin America, North America and Europe. Together, they serve more than 60 million customers, employ 80,000 people and manage more than $210 billion in assets.

In Fossil Fuel Nonproliferation Treaty Initiative

The Fossil Fuel Non-Proliferation Treaty Initiative is a global effort to achieve the goals of the Paris Agreement, promoting international cooperation to accelerate the transition to clean energy for all, fossil fuel expansion and the phase-out of existing production. It must be done quickly and fairly, financed in a way that leaves no worker, community or country behind, and must comply with the science needed to address the climate crisis.

Article posted online by: / Doris Holler /