Protesters call out US banks over fossil-fuel financing

By Al Mayadeen English
Source: Agencies
25 Apr 2023 22:03

Following commitments from many big US banks to reduce funding for fossil fuel projects, the ongoing financing of these projects comes under scrutiny.

Demonstrators listen to speakers from the Sierra Club local Virginia Chapter speak during a rocking-chair vigil rally demanding banks to stop funding fossil fuel projects at Franklin Park, in Washington, US, March 21, 2023 (Reuters)

Hundreds of climate protesters descended on areas of New York and San Francisco, demanding that banks adopt concrete climate resolutions on the eve of their annual shareholder's meetings, which determine crucial decisions regarding the funding of fossil fuels.

Concurrently, activists demonstrated outside a Wells Fargo in San Francisco.

US banks have financed the fossil fuel sector with more than $4.6 trillion since 2016, as per the most recent study released last week by Banking on Climate Chaos, a group that keeps track of bank funding for businesses in the fossil fuel sector.

According to the report, Citi, JP Morgan, Wells Fargo, and Bank of America are the top offenders, funding projects for fossil fuel giants like ExxonMobile, Shell, Chevron, and ConocoPhillips with $1.3 trillion in total.

Following commitments from many big US banks to reduce funding for fossil fuel projects, the ongoing financing of these projects is being scrutinized.

Say vs. do

Wells Fargo’s website says: “Climate change is one of the most urgent environmental and social issues of our time. Wells Fargo is committed to aligning our activities to support the goals of the Paris Agreement and helping transition to a net-zero carbon economy.”

In the same context, a Citi representative said, as quoted by The Guardian: “Citi recognizes the importance of transitioning to a low-carbon economy. That’s why we’re investing in clean energy solutions through our net zero commitments and our $1tn commitment to sustainable finance, while working with all our clients, including our fossil fuel clients, to support their efforts to decarbonize their businesses. Our approach reflects the need to transition while also continuing to meet global energy needs.”

Food insecurity, air intoxication, diseases, drought, and deteriorated worker productivity are just some of the effects that the #climatecrisis has so far triggered on a global scale. pic.twitter.com/VeSFgFfrQL
— Al Mayadeen English (@MayadeenEnglish) October 28, 2022

“Citi has committed to achieving net zero emissions associated with our financing activities by 2050, and net zero emissions for our operations by 2030,” says a 2022 Citibank “Taskforce on Climate-related Financial Disclosures” report.

However, activists say that big banks are involved in "greenwashing" or portraying themselves as pro-climate while their actions imply otherwise. They cite activists outside Citibank's New York headquarters as examples.

According to the Banking on Climate Chaos report, Citibank has invested $333 billion in the fossil fuel industry since the Paris Climate Agreement, making it the second-largest funder in the world behind JPMorgan Chase.

On Monday afternoon in New York, members of Extinction Rebellion were detained for spray-painting epithets such as "Climate Criminals" on the windows of Citibank's office.

Mark Graham, an Extinction Rebellion member since 2019 and a former Citigroup employee, said, “It is the financial companies that are at the intersection of funding climate chaos. It is the pressure point that we can work. We’re hoping to get the employees to realize they have power."

“The question is: are you doing enough? The answer is no. We have to change radically,” he added.