We all know that coal, oil and gas plants are burning fossil fuels that are harming the environment and creating global warming. But did you know that without vital funding from banks the fossil fuel industry would not be able to operate?
Funding a dying industry
Most of the money banks make comes from interest on loans and credit cards. But banks also lend money to and arrange debt for companies involved in the fossil fuel industry.
This is becoming an increasingly risky investment, because of volatile global energy prices. Add to this mix, there is pressure to move away from fossil fuel investment because of the harm it is creating and the risks associated with the industry.
Without vital funding from banks the fossil fuel industry would not be able to operate.
How much are banks investing?
The world’s 60 biggest banks have poured $4.6 trillion dollars into the fossil fuel industry since the global agreement in Paris in 2016 to limit global warming. The four biggest US banks have funded one quarter of that.
Chase
$382 billion
Citi
$285 billion
Wells Fargo
$271 billion
Bank of America
$232 billion
RBC
$201 billion
Barclays
$167 billion
Morgan Stanley
$137 billion
HSBC
$130 billion
The harm this funding causes
Few of us have escaped the effects of global warming. Whether you’ve had a basement flooded by a storm or a relative living close to forest fires, changes in our climate are affecting us all. But some are being affected more than others. The people who are losing out the most are vulnerable members of our community in Black, Brown and low-income households. The poorest countries in the world are also affected the most.
But people are standing up. Communities across the US, in Europe, Asia, Africa and South America are demanding action on climate change. We all need to come together to support them.