A group of investors with combined assets of more than 1.5 trillion US dollars (£1.23 trillion) have written to five of Europe's biggest banks, including Barclays, urging them to stop lending to fossil fuel firms.
Bracewell’s managing partner in London Jason Fox said this was not new “but the noose is tightening quickly and ESG is the headwind. It’s not just the E that’s biting but also the G, for governance, with banks increasingly retreating from emerging markets because of additional risks, particularly concerns around corruption.”
If we are to stick within the Paris targets, the OECD estimates that $70 trillion of investment in decarbonisation will be needed over the coming decade. This begs the trillion dollar question; where’s the cash going to come from?
BNP Paribas SA and its partners in a Scottish energy loan are staring at a loss of 122 million pounds ($172 million) after entrepreneur Ian Suttie’s venture went bankrupt, illustrating the wreckage banks are likely to face from the oil bust.
Oil prices fell more than 2% today after Goldman Sachs cut its crude forecasts, citing global oversupply and concerns over the Chinese economy, and after Saudi Arabia dismissed the idea of an oil producer summit.