Banks Backing Green Steel Fund ‘False Solutions,’ Report Says

Almost all major banks that have pledged to finance low-carbon steel are backing initiatives that will lead to additional greenhouse gas pollution.

An analysis published Wednesday by nonprofit BankTrack found that all but one of 20 top lenders — Lloyds Banking Group Plc being the exception — are funding companies or projects pursuing what the Netherlands-based group calls “false solutions.” These include approaches such as reducing iron ore by using natural gas or injecting hydrogen into blast furnaces, which BankTrack said risk prolonging carbon-intensive processes or driving deforestation.