17 banks endorse global call for a binding treaty to end fossil fuel production and use

17 banks endorse global call for a binding treaty to end fossil fuel production and use

Ecojesuit shares this recent press release from the Fossil Fuel Non-Proliferation Treaty initiative and Global Alliance for Banking on Values.

Seventeen banks from the Global Alliance for Banking on Values (GABV) recently endorsed the Fossil Fuel Non-Proliferation Treaty initiative, joining the global call for a binding treaty to end the use of fossil fuels.

GABV is a network of independent banks using finance to deliver sustainable economic, social, and environmental development. They are at the forefront of a growing number of institutions taking a significant step forward in the global effort to address the root cause of the climate crisis – the production and use of oil, gas, and coal.

As a network of the world’s most socially and environmentally responsible banks, GABV members endorsed the Treaty proposal including Triodos Bank, the first bank in the world to sign up. The 17 banks that endorsed the Fossil Fuel Treaty Initiative are:

  • Amalgamated Bank (US)
  • Banca Etica (Italy, Spain)
  • Bancosol (Bolivia)
  • Beneficial State Bank (US)
  • Centenary Bank (Uganda)
  • Clearwater Credit Union (US)
  • Climate First Bank (US)
  • Ekobanken (Sweden)
  • Finca DRC (Democratic Republic of Congo)
  • Merkur Cooperative Bank (Denmark)
  • NMB Bank (Nepal)
  • Summit Credit Union (US)
  • Sunrise Banks (US)
  • Triodos Bank (Netherlands, Belgium, UK, Spain, Germany)
  • Unity Trust Bank (UK)
  • Vancity (Canada)
  • vdk Bank (Belgium)

Since the Paris Agreement was signed, the world’s banks have pumped US$ 5.5 trillion into fossil fuels, according to Banking on Climate Chaos that released the Fossil Fuel Finance Report 2023. At the UN Climate Change Conference COP26 in Glasgow in 2021, major western banks pledged to reduce their carbon footprint and invest in green initiatives, aiming to achieve net zero emissions by 2050.

Despite commitments, the ratio of bank financing for low-carbon energy projects to fossil fuels falls short of targets, as research from Bloomberg NEF reveals. Moreover, banks with net zero targets provided substantial loans to oil, gas, and coal companies that expand their fossil fuel-related activities.

While the Paris Agreement set a crucial global climate target, many governments continue to approve new coal, oil and gas projects. The UNEP Production Gap Report 2023 warned that fossil fuel extraction plans undermine the world’s chances of meeting our global climate targets. The report revealed that, despite their climate pledges, governments still plan to produce around 110% more fossil fuels in 2030 than would be consistent with limiting warming to 1.5°C,  and 69% more than would be consistent with 2°C.

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