ESG & Investing
Wall Street Makes Zero Progress in Energy Finance Transition
The industry needs to get to a 4-to-1 ratio of clean energy versus fossil-fuel financing. At the end of last year, it was 0.73 to 1—little changed from 2021.
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The world’s largest banks are showing little or no progress when it comes to their promise to help the world avoid the worst consequences of global warming.
According to researchers at BloombergNEF, the ratio of spending on low-carbon infrastructure relative to fossil fuels needs to reach 4 to 1 by 2030. At the end of last year, the so-called energy-supply banking ratio, which includes debt and equity underwriting, was 0.73 to 1—slightly worse than the 0.75-to-1 ratio reported in 2021.