Fossil Fuel Financing: why and how policymakers should combat oil & gas expansion financed by UK banks
UK banks continue to finance fossil fuels at an alarming rate, despite the latest climate science, and there is a risk that the energy crisis will be used as an excuse to continue on this trend.
The commitments made by the Net Zero Banking Alliance (NZBA) are a step in the right direction but currently lack the ambition required to lead us to a climate-secure world.
Equally, the UK Government is sending mixed signals, on the one hand pledging ambitious emission reductions targets and on the other, supporting new oil & gas (O&G) fields. The IEA has made it clear the two are incompatible – even in the current geopolitical context it is more stringent climate policy, not O&G expansion, which is needed.
We propose a set of meaningful actions policymakers can take to accelerate action by the UK banking sector and to support the Government’s ambition to restore energy price stability and create the world’s first Net Zero-aligned Financial Centre.