World’s Largest Banks Contribute $869B to Fossil Fuel Firms

Today’s ESG Updates

• Banks boost fossil fuel funding despite climate goals: World’s largest banks committed $869B to fossil fuel firms in 2024, widening the gap between pledges and action.
• UK immigration rules threaten net-zero progress: New restrictions may reduce green job access, risking delays to decarbonisation targets.
• U.S. may block green jet fuel plan at UN aviation council: Political pushback could stall global efforts to scale sustainable aviation fuel.
• Amazon invests in cleaner cargo flights: New deal to use 9.4M litres of SAF supports ESG-aligned emissions goals by 2040.

World’s largest banks committed $869B to fund fossil fuel companies

A recent report shows that in 2024, a total of $869B was committed by the world’s largest banks, with the money going towards companies that deal with coal, oil and gas. It was found that two-thirds of the world’s largest 65 banks had increased their financial support for fossil fuel companies by $162B from 2023 to 2024.  Scientists warn that absolutely no new fossil fuel projects can begin if dangerous climate impacts are to be avoided, considering the disasters caused by global heating and record-breaking temperatures. Despite world leaders committing to the Paris agreement, banks have continued to fund fossil fuel projects, with $7.9T going towards fossil fuel activities since the deal. Amid recent political tensions, many banks, including the world’s top financial firms, have either watered down or entirely forgone their emission-reduction efforts, exacerbating the current climate crisis. 

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Further reading: World’s largest banks pledged $869bn to fossil fuel firms in 2024, new report finds

UK’s tighter immigration rules may affect net zero target efforts

A report warns that the recent rule amendments announced in the UK government’s immigration white paper may put the country’s net-zero mission at risk by causing labour shortages. The Labour Party’s white paper released last month includes plans to raise minimum qualifications, and the Centre for European Reform (CER) calculates that more than half – 260,000 out of 465,000 – of the foreign-born workers doing “green jobs” in the UK would not have been allowed into the country based on these new rules. Under the rules of this new visa, the construction industry may become understaffed, which poses challenges to the government’s target of decarbonising buildings and building 1.5M homes by the end of the parliament. Experts state that a lower net migration rate may not only result in labour shortages, but the independent Office for Budget Responsibility may need to downgrade its growth forecast. 

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Further reading: Tighter immigration rules could hit UK net zero mission, report warns

Sources predict that U.S.A. may object to green jet fuel recommendation at UN aviation council

Sources state that the U.S.A. is expected to object to a recommendation at the UN aviation agency council, as Washington says it unfairly favours Brazilian corn farmers over American producers for the development of green jet fuel. Global carriers that aim for net zero emissions by 2050 are being pressed to make a switch from kerosene to cleaner, but pricier material alternatives such as municipal waste, or cooking oil. Currently, global sustainable aviation fuel (SAF) accounts for less than 1% of the industry’s total jet fuel usage, and the International Air Transport Association projects the long-term cost of the aviation sector’s green transition to be $4.7T. The International Civil Aviation Organisation (ICAO) technical panel made recommendations in March which were objected to by the U.S. State Department, but said recommendation will be under review by the ICAO’s 36-member council before the global agency’s triennial assembly this coming autumn.

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Further reading: US Set to Object to Green Jet Fuel Recommendation at UN Aviation Council, Sources Say

Amazon acquires more than 9M litres of green aviation fuel 

Amazon has just entered a new agreement with renewable fuels producer, Neste, who will provide the e-commerce giant with 9.4M litres of sustainable aviation fuel (SAF) through the end of 2025 for their cargo operations at the San Francisco International Airport and the Ontario International Airport in California. According to Neste, their SAF reduces emissions by up to 80% over the fuel’s life cycle compared to using conventional jet fuels. The agreement involves blending of their SAF with conventional jet fuels, aligning with Amazon’s goal of achieving net-zero emissions by 2040. 

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Further reading: Amazon Buys More than 9 Million Liters of Sustainable Aviation Fuel for Cargo Flights

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the cover photo: Ships emitting smoke, Jan. 22, 2021. Cover Photo Credit:  Chris LeBoutillier