ANZ – Australia’s biggest lender to dirty fossil fuels
Global fossil fuel lending in 2016:
Has ANZ fulfilled its commitments on two degrees?
Towards the end of 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 the scorecard shows, the bank’s recent activity has been completely inconsistent with that commitment.
A two degree 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 even a 75% chance of not exceeding the limit.
What does this mean for ANZ? Well the obvious place to start would be a policy excluding new investments that expand the fossil fuel industry. Beyond this, the bank must commit to 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 two degree commitment, ANZ continues to loan to companies and projects that are expanding the fossil fuel industry.
One recent example is a ANZ’s $38m loan to Tata Power in February 2016. Tata Power is the largest energy company in India, producing around 80% of its power from dirty coal. The company is currently looking to develop new coal plants, including the massive 1600 MW Maharastra project at Dehrand. ANZ’s loan was part of a $460m refinancing deal, which will help Tata’s expansion plans.
In late October 2016, ANZ 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 are likely to become stranded if we are to meet the Paris Agreement’s 2°C target.
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.