NAB – Australia’s third biggest supporter of dirty fossil fuels
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NAB still backing dirty coal and other fossil fuels
In December 2017 NAB became the first of Australia’s big four banks to rule out lending to all new thermal coal mines or extensions. “NAB will no longer finance new thermal coal mining projects” the bank proclaimed.
Yet Market Forces’ research in 2018 found that not only has NAB has loaned almost $4 billion to fossil fuels since the 2016 Paris Agreement, this includes over half a billion dollars to projects that actually expand the scale of the sector.
Our analysis in January 2019 of the bank’s own reporting from 2017 to 2018 found NAB has shamefully increased its fossil fuel exposure by 9.5%.
Use our form to tell NAB it must stop funding fossil fuels.
Has NAB fulfilled its Paris climate pledge?
In late 2015, NAB 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 scorecard shows, the bank’s recent activity has been inconsistent with that commitment.
A 2°C warming limit gives us a 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 busting the limit.
What does this mean for NAB? Well, a good next step for the bank would be to extend its December 2017 thermal coal exclusion policy and rule out all investments that expand this dirty industry. NAB must commit to actively managing down its fossil fuels exposure, and become coal-free by 2021.
How is NAB expanding fossil fuels?
Despite its commitment to the Paris climate goals, NAB still lends to companies and projects that expand the fossil fuel industry, and has even helped arrange a deal that could see the Australian coal mining sector grow.
- Our analysis in January 2019 of NAB’s own reporting from 2017 to 2018 found NAB had actually increased its overall fossil fuel exposure by 9.5%.
- In May 2018 NAB contributed to a US$6.1 billion loan to the gigantic new Corpus Christi liquefied natural gas (LNG) facility in Texas. The project will enable the release of 811 million tonnes (Mt) of CO2-e during its lifetime ( about 1.5 times Australia’s emissions in 2017).
The Curragh coal mine in Qld, owned by Coronado
- In September 2018 NAB lent money to Coronado Coal, a company that has agreed to supply coal to the Stanwell coal plant in Qld until 2038 – well beyond the 2030 deadline to stop global coal burning.
- In February 2016, NAB facilitated a loan from US-based Peabody Energy to its Australian subsidiary. The US$250m loan allows expansion of Peabody’s Wambo coal mine in the Hunter Valley, a plan completely out of line with efforts to curb global warming.
Peabody's Wambo Coal joint expansion with United Colleries was finally approved by the Independent Planning Commission in August 2019.
.@NAB and @Westpac loaned to Coronado Coal in September, a company which recently agreed to supply #coal to the Stanwell coal plant until 2038. This is well beyond 2030, when Australia must stop burning coal for electricity to meet a 1.5°C warming limit https://t.co/zPMFQgG4Xc
— Market Forces (@market_forces) January 15, 2019
.@ANZ_AU, @NAB and @Westpac co-financed the acquisition of the Kestrel #coal mine in July. The mine's owner says it expects to double production at the mine, despite that >90% of Australian coal must stay in the ground to achieve Paris Agreement goals https://t.co/zPMFQgG4Xc
— Market Forces (@market_forces) January 16, 2019
NAB’s global fossil fuel lending since Paris climate 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 matches your values.