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Financial institutions are restricting fossil fuel funding

To date, over 100 and counting globally significant banks and insurers*, and asset managers and owners** have announced their divestment from fossil fuels including coal, oil, LNG, gas, oil sands and arctic drilling.

Many have also committed to reducing their fossil fuel exposure to align with the Paris Agreement’s emissions reduction target of 1.5 – 2.0° celsius.

When significant investors act, global momentum increases. The question now is, who’s next?

Further reading

October 2021: India and Australia’s richest race to net zero by 2030

October 2021: Spiking coal prices: Don’t blame the energy transition

September 2021: As fossil fuel prices skyrocket globally, renewables grow steadily cheaper

September 2021: President Xi Jinping’s profound United Nations General Assembly speech

September 2021: High stakes for Asian Development Bank’s ambitious coal power retirement plan

September 2021: Harvard fossil fuel divestment can serve as model for other institutions nationally and globally

September 2021: Gas is exiting the global energy mix, providing lessons for emerging markets

July 2021: Global investors are moving away from the massive climate-related risks associated with fossil fuels

May 2021: IEA’s net zero emissions by 2050 maps the huge increase in global ambition

May 2021: Global finance is mobilising to meet East Asia’s net-zero ambition

April 2021: Fossil fuel pressure and risks mounting for multilateral development banks

March 2021: Major investment advisors BlackRock and Meketa provide a fiduciary path through the energy transition

February 2021: ANZ divesting from the world’s largest coal export port is ‘pragmatism’

February 2021: Capital markets are shifting decisively towards cleaner investments

December 2020: Malaysia’s CIMB announces coal financing phase-out by 2040 as Asia’s fossil fuel divestment drive accelerates

October 2020: Why 2020 is turning out be a pivotal year for fossil fuel exits

October 2020: Financial retreat from oil and gas tracked

October 2020: From zero to fifty, global financial corporations get cracking on major oil/gas lending exits

July 2020: Coal, LNG, petrochemical sectors face poor outlook and uphill battle for investors

June 2020: Why are corporate giants pulling out of thermal coal?

April 2020: Asian financial institutions also beginning to exit coal financing

April 2020: Coal finance is heading to its logical terminal conclusion

February 2020: Nordic region leading by example since 2013

January 2020: BlackRock takes first step towards aligning US$7 trillion fund with Paris Agreement

December 2019: Tipping point looms for fossil fuels as capital flows to renewables

December 2019: Global capital acknowledges stranded asset risks

November 2019: Global coal power set for record fall in 2019

October 2019: AXIS joins 28 global insurers exiting coal financing

August 2019: IFM Investors is the latest asset manager moving to align with Paris

July 2019: Smart countries adapt to finance industry’s exodus from coal

July 2019: Coal pipeline shrinking, stranded asset risk ballooning, renewables ever cheaper

May 2019: Asian banks add to growing number of major financial institutions exiting coal

May 2019: The global energy transformation is well underway

April 2019: Norway’s GPFG sovereign fund to invest up to $14bn in unlisted renewables

March 2019: Japan: Pivot from thermal coal to renewables is building

March 2019: First Chinese major joins over 100 global financial institutions restricting coal finance

February 2019: Over 100 Global Financial Institutions Are Exiting Coal, With More to Come 

Notes

* IEEFA defines globally significant financial institutions as banks and insurers / reinsurers as having assets under management (AuM) greater than US$10billion.

** IEEFA defines globally significant asset managers / owners as having assets under management (AuM) greater than US$50 billion.

Exclusions

Significant financial institutions are restricted from this tally if they have AUM<US$10billion, and/or the institution’s announcement has not been followed up with public disclosure, and/or the restrictions are selectively limited.

IEEFA will continue to monitor announcements and will add or delete institutions pending implementation of said announcements.

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