Audio Policy - 20/May/2020

Finance dries up for coal, but flows on for oil and gas

COVID-19 may have reduced emissions in the short-term, but much more needs to happen to slash fossil fuel use to meet climate targets

FOSSIL FINANCE 
The world’s largest investment funds have provided $713.3 billion in loans, equity issuances and debt underwriting services to fossil fuel projects from 2016 to mid-2019, all of it since the 2015 Paris Agreement

MARKET SHIFT
Driven by fears of stranded assets and catastrophic climate change, the investment industry is starting to step away from fossil fuels and other environmentally damaging activities. One of the most notable announcements in the first months of 2020 was a declaration by New York-based BlackRock, the world’s largest investor in fossil fuels, that it will start aligning its $7 trillion fund with the Paris Agreement

KEY QUOTE
Greenhouse gas emissions will determine where capital is flowing, influenced by public opinion, pressure and government policy. As climate concern moves from the periphery of investor thinking to the mainstream it will drive the transition and associated jobs ...

 

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