ESG & Investing
Banks Make Little Headway in Addressing Climate Change
- Financing ratio for low-carbon energy rose slightly in 2023
- Key number remains far below net zero emissions goal of 4 to 1
The latest BloombergNEF data show that investment in low-carbon energy surpassed capital flows into oil, gas and coal projects for the first time.
Photographer: Anthony Prieto/BloombergThis article is for subscribers only.
The world’s largest banks are showing little progress when it comes to their promise of helping 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 to limit climate change. At the end of 2023, the so-called energy-supply banking ratio, which includes debt and equity underwriting, was 0.89 to 1, up from 0.74 in 2022 and 0.78 in 2021.