A new report by Market Forces reveals Australia’s big four banks have poured more than AU$61 billion into fossil fuels since the global agreement to limit climate change was adopted in Paris over eight years ago.

The analysis finds ANZ, NAB, Commonwealth Bank of Australia and Westpac loaned $3.6 billion to fossil fuels in 2023, including $2.5 billion in funding for companies expanding the coal, oil and gas industries, despite all four banks committing to global climate goals.

Leading experts, including the International Energy Agency and the Intergovernmental Panel on Climate Change, agree: achieving the Paris Agreement’s climate goals requires no new coal, oil, or gas development.

Australia’s biggest banks nearly halved their funding to fossil fuels between 2022 and 2023, however the majority of finance was still provided to companies expanding the coal, gas and oil sectors.

Kyle Robertson, Banks Analyst and report author, Market Forces said:

“Customers are very concerned that big banks are pouring billions of dollars into companies expanding coal, oil and gas when we must accelerate efforts to limit climate change and deadly disasters.”

“ANZ takes the cake as the biggest funder of fossil fuels, pouring more than $20 millioninto coal, oil and gas since Australia adopted the Paris Agreement to limit climate change.”

The new research finds that 2023 was the first year the big four Australian banks did not directly finance a new or expanded coal, oil or gas project since the Paris Agreement was signed.

In 2023, the big four banks continued greenwashing by providing almost 70 per cent of their fossil fuel lending to companies out of line with their climate commitments.

The analysis spotlights that general purpose corporate lending and bonds are being used as backdoor financing options for companies pursuing new and expanded coal, oil and gas developments.

“The big four banks are engaged in a monumental facade as long as they continue undermining a safe climate by funnelling billions to companies steaming ahead with more coal, oil and gas.”

“When will the banks live up to their climate commitments, follow the science and stop funding climate collapse?” 

Key findings on the big four banks

ANZ

ANZ is Australia’s biggest funder of fossil fuels since the Paris Agreement. The report finds that last year ANZ loaned nearly $1 billion to companies developing new coal, oil and gas, and has now loaned more than $20 billion to the fossil fuel industry since the Paris Agreement was signed. 

NAB

The analysis finds that NAB topped the charts as the biggest Australian fossil fuel lender in 2023. NAB loaned $1.4 billion to fossil fuels in 2023, including $860 million to companies with coal, oil and gas expansion plans. NAB is taking steps to address shareholder concerns over its greenwashing, but giant leaps are needed to fix the bank’s policy.  

Commonwealth Bank

Commonwealth Bank’s progress on fossil fuel lending stagnated in 2023. Its lending was slightly up from 2022, but was still the least of the big four at $271 million, comfortably less than third-placed Westpac. 

However, the bank did loan to APA Group which is planning to construct pipelines that would light the fuse on the Beetaloo basin gas fracking carbon bomb, and continues to hold significant exposure to thermal coal miners with coal expansion plans including Glencore. 

Westpac

Westpac loaned the third most to fossil fuels in 2023 at $784 million, but also loaned over half a billion dollars ($533 million) to companies expanding fossil fuels in 2023, including oil and gas giants JERA and APA Group.

The analysis spotlights five of the worst bank deals from 2023, including loans and bonds to ‘climate-wrecking’ companies:

• Japan’s largest power company JERA, which is pursuing massive new harmful gas developments;
• Australia’s biggest gas pipeline company, APA Group, involved in the carbon bomb Beetaloo basin;
• Santos and its dangerous new gas developments in Australia and Papua New Guinea;
• Glencore, one of the biggest coal miners in Australia pursuing the largest coal mine proposal ever put forward in NSW; and 
• BHP, a company pursuing massive three new or expanded coal mining projects. 

ANZ and Westpac are funding a fossil gas lock-in across Asia that threatens to derail the rapid clean energy transition required to meet global climate goals. 

Nearly two thirds (63%) of the world’s fossil gas expansion is planned in Asia. In recent years, ANZ and Westpac have funded companies responsible for part of these massive gas development plans, including Santos, Woodside, JERA, APA Group, and GE Vernova.