We’re on borrowed time.
From the IPCC to the IEA, no one now doubts the urgency of the climate crisis, and the rapid phase-out of fossil fuels required for 1.5°C to stay alive. Whatever the world’s governments decide at COP26, that means that private finance’s support for fossil fuels must also end. But banks, insurers and investors are still far from aligning with the demands of climate science: there are far too many weak coal policies and, astonishingly, next to no policies in place to turn off the taps for oil and gas expansion.
Unfortunately, the cascade of policy announcements over the past year hasn’t helped much. There are hundreds of companies developing new coal, oil and gas projects. Fancy pledges remain just that if they don’t decisively contribute to ending fossil fuel expansion now and quickly exiting coal. This is why Reclaim Finance will be tracking new announcements by some of the world’s biggest financial institutions before and during COP26. As CEOs strut onto the stage, we’ll be shining a spotlight, sifting the good from the bad, the green from the greenwashed.
As we go, we’ll watch out for the same old loopholes hiding behind net zero pledges and emission reduction targets, that prevent us from curbing both fossil fuel finance and emissions.