According to climate activist organisation 350.org, CommBank’s new 2030 fossil fuel lending targets are just smoke and mirrors, and fail to meet the basic requirements to reach net zero emissions by 2050.
In its latest Climate Report, published on Wednesday August 10th, CommBank included new interim targets for upstream coal, oil and gas exposure but failed to rule out funding new fossil fuel reserves – the critical requirement laid out by the International Energy Agency’s Net Zero Emissions by 2050 scenario. According to 350.org, CommBank’s interim targets to reduce upstream oil and gas lending by only 27% and 17% respectively by 2030 is also well below what the science requires.
According to 350.org, CommBank is out of line with its own commitments to net zero emissions by 2050, and CommBank and ANZ have the worst policy settings of the big 4 banks on upstream oil and gas.
According to Campaign Director Kelly Albion, “CommBank has failed to rule out funding new fossil fuel reserves, making its new climate targets nothing more than smoke and mirrors.
“CommBank’s latest climate report is heavy on greenwash, but allows billions of dollars in loans in coming decades to fossil fuels, which we know will drive dangerous climate impacts like floods, bushfires, and drought.”
“As the CommBank board reviews their oil and gas lending policy this year, we expect to see words met with action – no more financing of new or expanding fossil fuel projects and companies, and a complete phase out by 2030 of existing exposure.”
“For CommBank’s home loan and small business customers who are still cleaning up and recovering from floods, fires and storms, these aren’t just numbers in a report, it’s the reality of their life today.
“CommBank can’t claim to be committed to net zero emissions while at the same time lending billions to fossil fuel projects and companies: it’s that simple,” said Albion
For interviews – Kelly Albion, 0422 636 775
The International Energy Agency’s Net Zero Emissions by 2050 scenario requires financial institutions to end project finance for the development of new fossil fuel reserves not approved for development as of 2021. To be eligible for corporate finance and underwriting, it requires companies to implement transition plans ending the expansion of new fossil fuel reserves if not approved for development as of 2021.
For oil and gas, the IISD found that richest countries must phase out oil and gas production by 2034, to give lower income nations longer to replace their income from fossil fuel production – 74% of this reduction must happen by 2030.