Banks resisted committing to the clearest roadmap to reduce greenhouse gas emissions to net zero by 2050, just weeks before the COP26 Climate Change Conference in Glasgow.
Mark Carney-led initiative negotiators, who encourage financial groups to stop funding fossil fuel companies, told major banks all new oil, gas and coal this year, according to an internal message seen by Financial. The Times struggled to convince them to agree to end the funding of the exploration project. This is consistent with research by the International Energy Agency (IEA).
Many of the 59 banks that have signed the initiative of the former Bank of England Governor prefer to adopt the goals of the Intergovernmental Panel on Climate Change (IPCC), the UN scientific institution.
Kearney’s initiative, Glasgow Financial Alliance for Net Zero (Gfanz), was formed in April and has gained the support of about 300 financial institutions with $ 90 trillion in assets. IEA Published the analysis May.
“No one wants to give their name to IEA 1.5C. [targets]”A person close to the discussion with the bank said. “They think it’s a fairy tale.”
As part of the 2015 Paris Agreement, more than 190 countries have promised to limit global warming to well below 2 ° C, ideally 1.5 ° C above pre-industrial levels.
Kearney’s Gfanz Alliance has put together a series of initiatives aimed at ensuring that the world’s largest banks and financial companies reach their net zero emissions target by 2050.
Next month’s COP26 negotiations will focus on the rules for achieving the Paris Agreement, and the focus of the discussion will be on the role of finance in climate change.
Gfanz called for action on Monday, calling on the G20 government for a series of key policies aimed at achieving net zero. This includes ending fossil fuel subsidies, redistributing funds for a “fair” transition, banning unabated coal and oil power plants by 2040, and forcing all companies by 2024. Includes the introduction of advanced climate reporting and global financial reform. Regulations to encourage green investment.
“Financial companies cannot provide a sustainable economy on their own. The G20 government needs a clear, credible and ambitious climate policy,” said Kearney, the current UN Special Envoy for Climate Change. Stated. “The next few weeks of this decisive decade will help us decide whether to avoid a climate catastrophe.”
Gfanz’s banking group, known as the Net Zero Banking Alliance (NZBA), which includes HSBC, Bank of America and Santander, sets goals for climate change scenarios advocated by either the United Nations IPCC or the Paris-based IEA. I am calling on the lender to do so. Organization of oil producing countries.
The IPCC and IEA roadmaps have similar results in achieving net zero emissions, but the main difference between them is the new fossil fuels from this year, even though they are not included in the IPCC in the IEA scenario. Exploration projects are specifically prohibited.
There was disagreement at NZBA as to whether to adopt the IPCC or IEA scenario. The United Nations Environment Program Finance Initiative (Unep FI), which acts as the secretariat of the NZBA, supports the IPCC model, partly because it is a sister organization within the United Nations.
“The IPCC scenarios are very rigorous, ambitious and science-based. They are world-standard reference books, widely used by policy makers, scientists and other professionals to support the COP process. “More and more,” said Remco Fischer, climate change leader at UnepFI. ..
“There was no disagreement within NZBA as to which scenario to use.”
However, leaked emails indicate that Gfanz’s adviser has requested banks to adopt the IEA roadmap, which have been resisted.
“The IPCC scenario allows banks to continue to fund exploration programs,” said a person involved in the Gfanz talks.
“It’s a scientific scam. The idea is that we can continue to expand the production and use of fossil fuels, but tell the world that you are net zero.”
Banks are under increasing pressure from customers, investors and politicians seeking loans to the coal, oil and gas industries. They have also been accused of greenwashing by campaign participants and some shareholders for failing to comply with public statements about the need to limit greenhouse gas emissions.
Lenders such as Standard Chartered Bank, HSBC Bank and Barclays Bank have all made recent commitments to reach the net zero target by 2050, but have not yet stopped lending to fossil fuel companies.
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