ANZ – Still Australia’s biggest lender to dirty fossil fuels
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Tell ANZ two degrees means no more fossil fuels!
ANZ is Australia’s number one lender to fossil fuels. Since committing in 2015 to support the goal of keeping global warming below 2ºC, it has loaned nearly $7.4 billion to the dirty fossil fuel industry – more than seven times its lending to renewable energy.
And that’s not all. Our latest research has found that ANZ financed 93% more new fossil fuel projects in 2017 than they did in 2016. In total they handed out $905 million. Which is definitely no way for a bank to act if they are truly serious about helping fight climate change.
Tell ANZ that its two degrees pledge means no more fossil fuels in the email form below.
Has ANZ fulfilled its commitments on two degrees?
In late 2015, ANZ publicly committed to taking action to support the international aim of limiting global warming to less than 2°C above pre-industrial levels. But as our latest 2°C scorecard shows, the bank’s recent activity brazenly flouts that pledge.
ANZ topped the big four banks’ financing for fossil fuels in 2017, increasing loans to the industry by a whopping 93% on the year before. Altogether, ANZ handed out $905 million to new projects ranging from gas fields in Indonesia’s North Sumatra to the giant Ichthys LNG plant off the north of Australia.
A 2°C warming limit gives us a very strict carbon budget to work within, meaning 80% of known fossil fuel reserves must stay underground if we are to have a chance of not exceeding the limit.
What does this mean for ANZ? An obvious start would be a policy excluding any new investments that expand the fossil fuel industry. Beyond this, the bank must commit to actively managing down its exposure to fossil fuels, and become coal-free in five years.
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How is ANZ expanding fossil fuels?
Despite its 2°C commitment, ANZ continues to fund companies and projects hell-bent on expanding fossil fuels. Here’s a few examples:
- April 2018: ANZ contributed to a US $1.7 billion (AU$2.2b) deal to finance the purchase of Rio Tinto’s last coal asset by Indonesian coal miner Adaro Energy and private equity manager EMR Capital.
- October 2016: contributed $61m to a deal enabling a new gas-fired power plant to be built in Jakarta. This is despite warnings that new fossil fuel assets will likely become stranded under the Paris Agreement’s 2°C goal.
- December 2017: loaned US$45 million for Indonesia’s largest private oil and gas firm Medco Energi’s new Block A gas field in Sumatra. Lifetime CO2 emissions for this field will be roughly equivalent to 55% of Australia’s annual emissions.
- February 2016: loaned $38m to Tata Power, India’s largest energy company. Tata produces around 80% of its power from dirty coal and is looking to develop new coal plants, including the giant 1600MW Maharastra project. ANZ’s loan was part of a $460m refinancing deal, which will aid Tata’s expansion plans.
ANZ’s global fossil fuel lending since 2°C commitment
According to our latest findings, Australia’s Big Four banks are lending billions to projects that expand the fossil fuel industry despite promising to help limit global warming below 2°C. Take action: tell the Big Four banks to stop funding fossil fuels! https://t.co/Q8yUFP2Ma0 pic.twitter.com/DzYbQciU1d— Market Forces (@market_forces) May 31, 2018
Find out more about the extent and impacts of banks financing fossil fuels, compare the lending positions of different banks and learn more about how to switch to a bank that aligns to your values.