The rise of LNG shipping emissions is worsening the climate crisis, and global financial institutions are fueling this problem. Our report, "Banking on a Climate Shipwreck," reveals how major banks are investing billions into liquefied natural gas (LNG) in the maritime sector, locking shipping into fossil fuel dependency.

Key findings on maritime LNG financing

Our report, Banking on a Climate Shipwreck, uncovers that over $335 billion has been funneled into maritime LNG projects in the last five years. This funding is locking the shipping industry into long-term reliance on LNG, which is primarily composed of methane—a greenhouse gas 84–87 times more harmful than carbon dioxide over a 20-year period.

Key findings include:

• $335 billion in financing: Financial institutions have provided over $335 billion for LNG-powered ships, refueling stations, and other fossil gas infrastructure.
• Worsening methane emissions: LNG consists primarily of methane, a greenhouse gas that significantly contributes to global warming.
• Greenwashing by banks: Despite publicly claiming to reduce their carbon footprint, these banks continue to fund LNG projects, making the climate impact worse.

The shipping industry’s role in climate change

Shipping moves 90% of global trade and, if it were a country, it would rank as the sixth-largest emitter of greenhouse gases worldwide. The continued funding of LNG in the shipping industry increases the sector’s reliance on fossil fuels, contributing to the rise in LNG shipping emissions. This financing is directly at odds with global efforts to combat climate change.

As the shipping industry expands

LNG shipping emissions will continue to rise unless banks shift their investments to clean, zero-emission alternatives. Methane emissions have already increased by over 150% between 2012 and 2018. This trend will only worsen if LNG projects persist.

Call for action: Banks must shift investments to clean energy

Financial institutions, therefore, have a critical role to play in the fight against climate change. Banks must shift their investments from LNG to clean energy solutions. Wind-assisted propulsion, electric ships, and hydrogen fuel, banks can help the shipping industry transition to a more sustainable future.

It’s time for banks to align their financing with their climate promises. Banks must stop funding the expansion of LNG in the maritime sector.

For more details, download our full report, “Banking on a Climate Shipwreck,” and join us in holding financial institutions accountable.

Re-published from the original news article on the Stand.earth website here.