It’s Friday, May 21, and banks across the globe are choosing green projects over fossil fuels.
Global banking institutions might finally be favoring green projects over traditional ventures involving fossil fuels. A Bloomberg News analysis of almost 140 financial institutions worldwide shows that banks have committed more money to renewable energy and other climate-friendly projects so far in 2021 than to fossil fuel-backed ones. From the start of this year to May 14, $203 billion in bonds and loans were issued to green ventures, compared with $189 billion to projects utilizing dirty energy.
“We may well be at a powerful tipping point,” Tim Buckley, a clean-energy investor formerly of Citigroup, told Bloomberg News. “Finance will only lead when the numbers make sense.”
The data show a sharp change: In the five years since the signing of the Paris Agreement, banks have funneled more than $3.6 trillion into non-renewable energy projects, making an estimated $16.6 billion in profits. The billions of dollars in fees pocketed for underwriting fossil fuel projects were a major reason why banks prioritized them over greener proposals.
This year, however, amidst a backdrop of new climate pledges by major players like the U.S. and China, financial heavyweights have recognized that green projects are also viable moneymakers. Since President Joe Biden took office, America’s leading financial institutions JPMorgan, Citigroup, and Bank of America have pledged to facilitate at least $4 trillion for sustainable and climate-friendly deals over the next decade.
The Smog
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