Finshots Daily Are banks lying to us?
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Jun 25, 2025 Explore the troubling disconnect between banks' climate promises and their ongoing investments in fossil fuels. Delve into greenwashing trends and the complexities of transition finance. Discover the urgent need for banks to halt fossil fuel funding to meet climate goals. The podcast highlights the challenges faced by major banks as they retreat from their commitments, especially in struggling economies. Engage with these pressing issues that could shape the future of sustainable banking.
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Banks Break Climate Finance Promises
- Banks pledged to align financing with the Paris Agreement but poured $3.3 trillion into fossil fuels from 2021 to 2024.
- This discrepancy shows a major gap between climate promises and actual financial actions by big banks.
Starwood Energy's Successful Transition
- Starwood Energy closed two coal plants 30 months earlier and converted sites into clean energy battery hubs.
- This transition cut 4 million tons of CO2 and funded renewable energy development effectively.
Banks Use Loopholes to Fund Fossils
- Banks often use transition finance as an excuse to continue funding fossil fuels without serious plans for climate action.
- Many allow general purpose loans that can support fossil fuel expansion despite project-level exclusions.