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43 banks from 23 countries on all continents have joined Mark Carney& #39;s Net Zero Banking Alliance, under the UNFCCC& #39;s "Race to Net Zero" campaign
A thread on the good, the bad, and the ugly of the alliance & the Net-Zero guidelines it published today
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
https://www.unepfi.org/net-zero-banking/">https://www.unepfi.org/net-zero-...
A thread on the good, the bad, and the ugly of the alliance & the Net-Zero guidelines it published today
https://www.unepfi.org/net-zero-banking/">https://www.unepfi.org/net-zero-...
Let& #39;s start with what& #39;s nowhere to be found within the Guidelines - despite being *pretty crucial* to any bank& #39;s climate strategy:
* Coal and fossil fuel phase out plans
* Biodiversity loss and deforestation
* Just Transition (although the SDGs are briefly mentioned)
* Coal and fossil fuel phase out plans
* Biodiversity loss and deforestation
* Just Transition (although the SDGs are briefly mentioned)
Not requiring robust coal phase out plans is a missed opportunity in light of:
* The UK gvt& #39;s coal agenda ( @PastCoal)
* Investors& #39; expectations for the banking sector
https://www.iigcc.org/resource/investor-expectations-for-the-banking-sector/">https://www.iigcc.org/resource/... https://shareaction.org/shareholder-campaign-secures-hsbc-coal-phase-out/
*">https://shareaction.org/sharehold... Leading banks& #39; coal policies (it& #39;s possible to do it guys!)
* The UK gvt& #39;s coal agenda ( @PastCoal)
* Investors& #39; expectations for the banking sector
https://www.iigcc.org/resource/investor-expectations-for-the-banking-sector/">https://www.iigcc.org/resource/... https://shareaction.org/shareholder-campaign-secures-hsbc-coal-phase-out/
*">https://shareaction.org/sharehold... Leading banks& #39; coal policies (it& #39;s possible to do it guys!)
* Citizens and customers& #39; expectations
https://bit.ly/3tEJ7gO
And">https://bit.ly/3tEJ7gO&q... of course the fact that coal and fossil fuels in general are a leading source of GHGs & that our planet is literally burning
https://bit.ly/3tEJ7gO
And">https://bit.ly/3tEJ7gO&q... of course the fact that coal and fossil fuels in general are a leading source of GHGs & that our planet is literally burning
What& #39;s good about the NZBA then?
* Banks "shall" disclose their financed emissions on an annual basishttps://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen">
* Banks are mandated to use scenarios that "shall be" no-overshoot or low-overshoot (e.g. IPCC P1 & P2 scenarios) & have conservative assumptions on NETshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">
* Banks "shall" disclose their financed emissions on an annual basis
* Banks are mandated to use scenarios that "shall be" no-overshoot or low-overshoot (e.g. IPCC P1 & P2 scenarios) & have conservative assumptions on NETs
They "shall" also have "reasonable assumptions" on carbon sequestration achieved through nature-based solutions & land use changehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🌳" title="Laubbaum" aria-label="Emoji: Laubbaum">
This will be subject to interpretation but is nevertheless an important recognition of the massive risk of relying on NETs
https://bit.ly/3sDE0w2 ">https://bit.ly/3sDE0w2&q...
This will be subject to interpretation but is nevertheless an important recognition of the massive risk of relying on NETs
https://bit.ly/3sDE0w2 ">https://bit.ly/3sDE0w2&q...
Banks are mandated to set 2030 & 2050 targets for the emissions embedded in their financinghttps://abs.twimg.com/emoji/v2/... draggable="false" alt="☀️" title="Sonne mit Strahlen" aria-label="Emoji: Sonne mit Strahlen">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="😱" title="Vor Angst schreiendes Gesicht" aria-label="Emoji: Vor Angst schreiendes Gesicht">Howeverhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="😱" title="Vor Angst schreiendes Gesicht" aria-label="Emoji: Vor Angst schreiendes Gesicht">
* The targets don& #39;t need to be aligned w 1.5C (the guidelines refer to "well-below 2C & striving for 1.5C")
* Only members of the #UNPRB have to get their targets verified
* The targets don& #39;t need to be aligned w 1.5C (the guidelines refer to "well-below 2C & striving for 1.5C")
* Only members of the #UNPRB have to get their targets verified
* The targets do *NOT* need to cover off-balance sheet activities such as underwriting
This. is. madness.
Major banks provide as much fossil fuel financing through underwriting as they do through lending.
This. is. madness.
Major banks provide as much fossil fuel financing through underwriting as they do through lending.
* Banks have a total of 4 years to set targets & publish plans to back these up
I understand it is not easy. That methodologies don& #39;t always exist, data is missing, and things still need to be figured out. But *four* years!?
Many European banks have ***already*** set targetshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="😳" title="Errötetes Gesicht" aria-label="Emoji: Errötetes Gesicht">
I understand it is not easy. That methodologies don& #39;t always exist, data is missing, and things still need to be figured out. But *four* years!?
Many European banks have ***already*** set targets
* Offsets are thought to have a role to play but preferably where "there are limited technological or financial alternatives to eliminate emissions"
https://abs.twimg.com/emoji/v2/... draggable="false" alt="⚠️" title="Warnsignal" aria-label="Emoji: Warnsignal">This will be subject to interpretation w/o clear guidelineshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="⚠️" title="Warnsignal" aria-label="Emoji: Warnsignal">
They also do not *need* to be additional & certified
They also do not *need* to be additional & certified
This will be subject to interpretation w/o clear guidelineshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="⚠️" title="Warnsignal" aria-label="Emoji: Warnsignal">They also do not *need* to be additional & certified" title="* Offsets are thought to have a role to play but preferably where "there are limited technological or financial alternatives to eliminate emissions" https://abs.twimg.com/emoji/v2/... draggable="false" alt="⚠️" title="Warnsignal" aria-label="Emoji: Warnsignal">This will be subject to interpretation w/o clear guidelineshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="⚠️" title="Warnsignal" aria-label="Emoji: Warnsignal">They also do not *need* to be additional & certified" class="img-responsive" style="max-width:100%;"/>
Many are likely to disagree - and I do speak from a European perspective - but I fear that the Net-Zero Banking Alliance is a missed opportunity to define climate leadership for the banking sector
As @PositiveMoneyUK told the FT this morning...https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
As @PositiveMoneyUK told the FT this morning...
“More voluntary alliances filled w repeat greenwashing offenders is not enough”
“We need urgent action from regulators (..) to ensure that the entire financial system is aligned with the legally binding environmental targets gvts have committed to”
https://www.ft.com/content/77a8292d-2e7f-43a1-9062-2e639c1e6b2a">https://www.ft.com/content/7... /END
“We need urgent action from regulators (..) to ensure that the entire financial system is aligned with the legally binding environmental targets gvts have committed to”
https://www.ft.com/content/77a8292d-2e7f-43a1-9062-2e639c1e6b2a">https://www.ft.com/content/7... /END
