UK banks are fuelling deforestation around the world. Martha Marcuson, Senior Communications Advisor at Global Witness, explores the problem and what can be done to stop financial institutions funding the destruction of climate-critical forests.
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Update: 3rd December 2021 - Since this article was written, Shell has withdrawn from the Cambo oil field project in a major victory for campaigners.
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Fossil fuel giant Shell, alongside Siccar Point Energy, have applied for a permit to develop the Cambo oilfield in the North Sea, to the west of Shetland. This permit would allow them to produce as many as 170 million barrels of oil between 2025 and 2050, despite the disastrous environmental consequences this would cause.
If given the green light, Cambo would be the emissions equivalent of operating 18 coal-fired power plants.
It would also be one of the first proposals to receive approval since the International Energy Agency declared that there can be no new oil and gas supply projects if the world is to limit global warming to 1.5°C.
As we have covered extensively, where we put our money matters. Banks, pension funds and financial services invest the money we hold with them in a variety of ways meaning that, even if we’re committed to sustainable and ethical lifestyles, we could unwittingly be funding these fossil fuel projects, alongside other issues such as deforestation and the arms trade.
Now, new research has shown that our high street banks are directly financing the companies behind Cambo.
Banks are funding the Cambo oil field and climate change
Thirty-four major UK and international banks currently fund Shell and Siccar Point Energy, providing a total of $4.5bn in financial services since the Paris Agreement was signed.
UK high street banks Barclays, Lloyds, HSBC, Standard Chartered and Natwest alone provided financial services totalling $5.93 billion to oil and gas companies operating in the North Sea since 2016.
Many of these banks are also members of the Net-Zero Banking Alliance or signatories of the Collective Commitment to Climate Action; committing to aligning their portfolios to the goal of net zero by 2050 or sooner. These commitments require them to use credible, science-based decarbonisation scenarios, and to work with clients on their transition.
Supporting Cambo directly contradicts these promises.
Banks involved include:
- Barclays
- Lloyds
- HSBC
- Natwest
- Standard Chartered Bank
- Bank of America
- Deutsche Bank
- Morgan Stanley
- Société Générale
- BNP Paribas
- Citigroup
- Crédit Agricole
- Credit Suisse
- ING Bank
- Lloyds
- JP Morgan Chase
- Santander
- SpareBank 1 SR Bank
- Standard Chartered
- UBS
- Goldman Sachs
- Royal Bank of Canada
- Bank of America
- Wells Fargo
- Groupe BPCE
- Toronto-Dominion Bank
- SMBC Group
- Mizuho Financial
- Industrial and Commercial Bank of China
- Bank of China
- ANZ
- Credit Suisse
- Nedbank
- DNB
- ABN AMRO
- Commonwealth Bank of Australia
- Pareto
- NIBC Holding
- SBERBANK
