US and Canadian banks increase lending to environmentally damaging energy projects
(28 March 2018 – Global) Financing of “extreme fossil fuels” increased by 11 percent in 2017 with the world’s major banks committing $115bn to tar sands, Arctic and ultra-deepwater oil extraction, liquefied natural gas export, coal mining and power projects.
While financing of extreme fossil fuels declined in 2016 with the signing of the Paris Climate Agreement, it increased significantly in 2017.
Research produced by a group of environmental pressure groups found that the main US and Canadian banks increased their financing in this area while European, Chinese, Australian and Japanese banks decreased it.
Royal Bank of Canada, Toronto Dominion Bank and JPMorgan Chase were highlighted as the three leading banks for financing extreme fossil fuel projects.
The increase in financing was driven primarily by higher funding for tar sands extraction and pipeline projects, which more than doubled last year to $47bn.
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