Out of the 24 European banks contacted by civil society groups from across the world, none committed to refrain from financing activities linked to biodiversity destruction, including in highly threatened areas such as the Coral Triangle.
36 NGOs and community organizations worldwide wrote to 24 European commercial banks in June demanding that they address the threats that fossil fuels pose to biodiversity. In particular, they called for ending all financial support to planned and existing fossil fuels projects and the companies behind them in all critical biodiversity areas, including in the Coral Triangle. [1]
Seventeen banks replied, largely highlighting their existing policies and the ways in which they were supposedly already addressing the issue (e.g. exclusion in a given area, due diligence for a certain sector, or adherence to standards like the Equator Principles). BNP Paribas was the only bank to that, as of July 2026, it is not financing any LNG terminals in the Coral Triangle, noting:
"[R]egarding the Coral Triangle specifically, we do not finance exploration production, nor liquefaction or regasification terminals, whether floating or onshore, and none of our corporate financing is earmarked for such infrastructure."
The next step for BNP Paribas would be to turn this position into a commitment, as it goes beyond the bank's current policy regarding the financing of upstream and midstream projects [2] and is aligned with an earlier statement by the bank in which they emphasized they had no appetite to finance LNG export terminals outside of Europe.[3]
Our assessment of the existing commitments and financing track records of these banks shows that none of them fully exclude the financing of fossil fuel projects and the companies developing and operating them in critical biodiversity areas, including the Coral Triangle. With global biodiversity collapsing at an unprecedented rate and banks' oil & gas finance on the rise, current commitments are clearly not enough.
The role of fossil fuels and banking in biodiversity destruction
Fossil fuel production is a major driver of biodiversity destruction, contributing to the loss of species and vital habitat. Globally, average vertebrate populations have declined by more than 70% since 1970, while nearly 50,000 species are now threatened with extinction. A key reason for that is that ecosystems — including wetlands, grasslands, and forests — are rapidly shrinking due to human activities.
In addition to their massive climate impacts, coal, oil and gas exploration, production and transport contribute directly to deforestation, pollution, habitat fragmentation and ecosystem degradation. Biodiversity loss is not only an environmental crisis; it is also a human and economic one. Healthy ecosystems provide water security, food systems, coastal protection, carbon storage and resilience against extreme weather events. Their degradation threatens livelihoods, food security, public health and long-term economic stability.
Banks have both the responsibility and the ability to refrain from financing biodiversity destruction and prevent these risks. Long neglected, this issue has finally made its way onto the agenda of many financial actors, while regulators and financial supervisors increasingly scrutinize nature-related risks.
The Coral Triangle cannot wait
The Coral Triangle, spanning Indonesia, Malaysia, Papua New Guinea, the Philippines, Solomon Islands, and Timor-Leste, is the most biodiverse marine region on Earth, containing 76% of global coral species and more than 2,000 reef fish species. Over 120 million people living in the broader Coral Triangle Initiative implementation area[4] depend on its ecosystems for food security, livelihoods, and coastal protection. Despite its ecological importance, the Coral Triangle is facing a rapid expansion of oil and gas infrastructure.
More than 100 offshore oil and gas blocks are already operating in the Coral Triangle Initiative implementation area, overlapping extensively with sensitive ecosystems. Some 24% of coral habitats, 22% of seagrass meadows and 37% of mangroves fall within concession areas. More than 450 additional offshore blocks are currently under exploration. If developed, offshore oil and gas production infrastructure could expand from 1% to 16% of the whole area.
Liquefied natural gas (LNG) infrastructure is also expanding rapidly. As of January 2024, 19 onshore or floating LNG terminals were operating in the same area, with 31 additional terminals planned or under construction. Most are located within 10 kilometers of coral, seagrass or mangrove habitats.
The only way forward: protect biodiversity, stop fossil finance
European banks' current policies do not go far enough. Acting on biodiversity requires policies that:
- cover the entire gas value chain;
- go beyond project finance and include corporate finance;
- cover all critical biodiversity areas globally.
Climate impacts alone mandate all banks to end all forms of financing for fossil fuel expansion. Biodiversity considerations reinforce this imperative and further require all banks to immediately adopt the following measures in all critical biodiversity areas, including the Coral Triangle:
- Stop all new project-related and dedicated support for new and existing fossil fuel infrastructure in critical biodiversity areas, across the entire value chain, with the exception of financial services dedicated to decommissioning activities.
- Stop providing corporate financing to companies developing new fossil fuel projects in critical biodiversity areas.
- Make financing to companies involved in existing projects conditional on the adoption and publication of a Paris-aligned phaseout plan, including the decommissioning of existing infrastructure in critical biodiversity areas and the remediation of environmental and community damage.
Banks must take concrete action to ensure that their financing does not contribute to biodiversity destruction, and we will continue campaigning for it.
