How big banks fund climate injustice, and some ways to take action
Thanks to Raga Maddela for contributing to this wiki alongside other MJN collective members!
The global scientific community and binding international agreements — like the 2015 Paris Agreement — clearly state that we must phase out fossil fuels to have a livable future. But governments and banks are still funding fossil fuel expansion.
And the vast majority of expansion projects are designed to concentrate pollution in BIPOC communities.
Since 2016, the world's 60 largest banks have committed $6.9 trillion to the fossil fuel industry. Nearly half, $3.3 trillion, went to fossil fuel expansion projects. In 2023 alone, the world’s 60 largest banks financed almost $350 billion towards expansion projects.
ExxonMobil, Citibank’s top fossil fuel client, creates the majority of its pollution — 70% — in communities of color. Enbridge Inc’s $35 billion expansion project is developing over 1200 km of pipelines in Canada on unceded indigenous territory. Community members of the Stk’emlupsemc te Secwepemc Nation (SSN) are opposing the construction and state that it occurs near Jacko Lake, B.C., which is sacred to the community.
The painful truth: banks will keep on actively working to worsen climate change and injustice if there is personal profit to be made. They will only stop if public pressure, regulation, and close monitoring make it impossible or unprofitable. For example, pressure from indigenous activists in Amazonia and activists at NY’s Citibank HQ are why Citibank has pledged to no longer provide project-related financing for oil and gas expansion in Amazonia. The pledge could halt a $500 million project by Hunt Oil Peru that puts indigenous peoples at risk of disease and death.
Unfortunately, the pledge is a drop in the bucket: project financing only accounts for 18% of Citibank’s fossil fuel funding.
Action Corner
See if your bank is involved in funding climate injustice. We're thinking about providing a directory of alternatives; let us know if you’d like to help build it!
Support or join Summer of Heat activists, who are successfully pressuring Citibank to defund fossil fuel projects.
Read more on how banks are destroying the Amazon while pretending to be green.
