Stirrers renew debate on stranded loans
Opponents of lending by banks to companies in the fossil fuel energy supply chain have collated a new list of estimated lending by the Big Four Australian banks to the sector.Friends of the Earth, under the banner of Market Forces, aim to reset choice on credit risk management at banks in connection with customers likely to own stranded or worthless assets.In a pamphlet at their website yesterday Friends of the Earth estimated fossil fuel lending since 2008 by ANZ, Commonwealth Bank, National Australia Bank and Westpac at A$70 billion.Of this, FoE estimated the four banks advanced $5.6 billion over the last year."Australia's major banks have made a mockery of their 'two degree' commitments by pouring $5.6 billion into the expansion of the fossil fuel industry in the months since the December 2015 Paris climate change agreement," FoE said.This funding for fossil fuels, FoE contends, "also dwarfs the $1.5 billion invested into renewable energy, with only NAB having a positive ratio in terms of clean to dirty energy finance. "This is in stark comparison to global trends, with clean energy attaining twice as much finance as fossil fuels in 2015, according to Bloomberg."Friends of the Earth estimated that "since the Paris Agreement, for every $1 invested in renewables, Westpac has loaned $11.60 to fossil fuels, ANZ $10.10 and CBA $4.25."