August 9, 2023

CommBank’s new gas lending policy signals end of the gas era, other banks must follow suit

Summary: Commonwealth Bank’s Climate Update released this morning effectively rules out any lending to oil and gas projects, including some key infrastructure to new oil and gas fields, as well as ending funding from 2025 for fossil fuel clients without independently verified plans to cut all emissions – including from the end use of their coal, oil and gas.

Climate group Australia welcomes this big-4 leading policy and calls on the Federal Government to end all gas subsidies now.

Kelly Albion, Campaigns Director at 350 Australia said “We welcome this smart move by CommBank, which signals the end of the era of gas and call on all big banks to follow suit.

“Although it should be immediate, CommBank’s Transition Plan Framework means some of CommBank’s dirtiest clients like Santos, Glencore, Beach Energy and Cheniere will no longer be eligible for finance from the bank from 2025.

“Banks distancing themselves from fossil fuels is no coincidence – they know the era of coal and gas will be over in the coming years, and they clearly understand the public backlash that comes from siding with harmful industries.

“Activists and shareholders have been pressuring CommBank for years over their vast fossil fuel lending, and now they’ve finally responded – first with a 92% reduction in fossil fuel lending, now ruling out all new oil and gas finance.

“Gas corporations should be sweating – this is a monumental shift in fossil fuel finance. This move will make it harder for fracking companies to secure Australian finance, welcome news for communities resisting critical projects and all of us who dream of a safe climate. However, with companies like Santos and Woodside currently attempting to open up large new gas projects in Australia, CommBank should also rule out any corporate loans to these companies immediately.”

“Now that Australia’s biggest bank is distancing themselves from gas, so too should the Australian government. That means ending gas handouts for their wells, roads and reports, and stop making the climate crisis worse by putting an end to coal and gas mining by the end of the decade.”

See CommBank’s Climate Report here.

Media contact and comment: Kelly Albion, 0422 636 775  \