What's Happening?
Stand.earth has released an assessment of 843 fossil fuel deals involving 330 banks since the Paris Agreement on climate change was ratified. These deals amount to over $15 billion, with $2 billion completed between January 2024 and summer 2025. While
some banks like HSBC and BNP Paribas have improved their exclusion policies, others have increased their support for the industry. Brazilian bank Itaú is noted as the largest financier of Amazon oil and gas for 2024-2025. The report calls for banks to close loopholes and exit Amazon oil and gas financing.
Why It's Important?
The continued financing of oil and gas projects in the Amazon rainforest by major banks poses significant environmental risks, threatening biodiversity and contributing to climate change. The report highlights the need for financial institutions to adopt more stringent policies to protect sensitive ecosystems. The upcoming COP30 climate summit in Brazil will focus on energy transition and climate adaptation, emphasizing the urgency for banks to align their practices with global climate goals.
What's Next?
The COP30 climate summit in Brazil is set to begin on November 10, 2025, with discussions on energy transition and climate finance. The summit presents an opportunity for banks to reassess their financing strategies and commit to more sustainable practices. The pressure from environmental groups and the global community may lead to increased scrutiny and potential policy changes within the banking sector.
Beyond the Headlines
The report underscores the ethical responsibility of banks to consider the long-term environmental impact of their investments. The financial sector's role in climate change mitigation is crucial, and banks may face reputational risks if they fail to act. The focus on the Amazon rainforest highlights broader issues of environmental justice and the need for equitable climate solutions.
