# Bank funding for renewables stagnates vs oil and gas – report
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-01-24
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Banks' Financing Trends in Renewable Energy vs. Fossil
Meta Description: Discover the latest findings on bank financing for renewable energy and fossil fuels, and the critical role they play in the transition to a low-carbon future.
URL: https://financedigest.com/bank-funding-for-renewables-stagnates-vs-oil-and-gas-reporthtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-01-24t022855z2lynxmpej0n00vrtroptp4global-banks-energy-515x354-1-1736814552113-compressed.jpg)

LONDON (Reuters) – The share of bank finance going to renewable energy rather than fossil fuels has little changed in six years, raising questions about how fast lenders are pushing energy clients to become greener, according to research published Tuesday.

Since 2016 renewable energy has taken 7% of a total $2.5 trillion in bank loans and bond underwriting for energy activities, according to a report commissioned by environmental groups including Sierra Club and Fair Finance International.

The total annual sum banks have facilitated into renewable energy rose to a high of $34.6 billion in 2021, from $23.2 billion in 2016, but the amount going to fossil fuels increased too, keeping renewables’ share broadly the same.

Last year the share of [renewable energy in funding](https://www.financedigest.com/in-renewed-push-spain-to-tender-eu-funds-for-evs-batteries-in-july.html "In renewed push, Spain to tender EU funds for EVs, batteries in July") 8% while in 2021 and 2020 it stood at 10% and 7% respectively.

[“Banks’ financing to fossil fuels](https://www.financedigest.com/stocks-rise-after-bank-sale-fuels-investor-risk-appetite.html "Stocks rise after bank sale fuels investor risk appetite") should be phasing out as financing to renewables increases drastically to have any chance of reaching the world’s – and their own – climate goals,” said Ward Warmerdam, researcher at Profundo, which compiled the data.

Lenders say they must [finance fossil fuels given global energy needs but that they are helping firms transition](https://www.financedigest.com/3-key-ways-you-can-transition-from-finance-to-fintech.html "3 key ways you can transition from finance to fintech") to low-carbon future.

Renewable [companies often tap private and government finance](https://www.financedigest.com/ultimate-growth-for-sme-finance-company.html "Ultimate growth for SME finance company") too, they add.

This [report does not provide a comprehensive view of clean energy investment,”](https://www.financedigest.com/manchester-united-tanks-on-report-glazers-may-avoid-sale-with-new-investment.html "Manchester United tanks on report Glazers may avoid sale with new investment") said a spokesperson for The Glasgow Financial Alliance for Net Zero, a major grouping of financial institutions

The spokesperson pointed to analysis from the International [Energy Agency which suggested that between 2021 and 2022 around 48% of total energy investment went to low-carbon energy supply](https://www.financedigest.com/ges-investors-seek-solutions-to-renewable-energy-supply-chain-challenges.html "GE’s investors seek solutions to renewable energy, supply chain challenges").

JPMorgan, Citi and Barclays’ renewable energy share was 2% between 2016 and 2022 and The Royal [Bank of Canada’s](https://www.financedigest.com/bank-of-canada-seen-on-hold-even-as-economy-accelerates.html "Bank of Canada seen on hold even as economy accelerates") 1%, the report said. Citi declined to comment. JPMorgan, Barclays and RBC did not respond to requests for comment.

The research covered 60 of the world’s [biggest lenders and 377 energy firms](https://www.financedigest.com/uk-firms-plan-biggest-pay-rises-since-2012-to-fill-staff-gaps.html "UK firms plan biggest pay rises since 2012 to fill staff gaps"). It excluded biomass, [nuclear and carbon capture and storage from its renewable energy](https://www.financedigest.com/europes-energy-crisis-and-the-nuclear-path-out.html "Europe’s energy crisis and the nuclear path out") definition.

(Reporting by Tommy Reggiori Wilkes; Editing by Tomasz Janowski)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---