Saturday, March 29, 2025
UK Banks Fund Carbon : According to a recent report, leading UK banks have injected more than £75 billion into companies behind “carbon bomb” projects—large-scale oil, gas, and coal developments that could severely worsen the climate crisis. These ventures, if completed, may result in a staggering 420 billion tonnes of CO₂ emissions.
Moreover, the research identifies nine top London-based banks—including HSBC, Barclays, Lloyds, and NatWest—that have backed 117 of these projects in 28 different countries since 2016. Notably, this was just a year after the Paris Agreement was signed.
While the UK plays a minor role in hosting such projects, the study emphasizes that its banks are crucial enablers. In fact, the UK finances over a quarter of the world’s identified carbon bombs. Consequently, this raises serious questions about the country’s global climate responsibility.
Fatima Eisam-Eldeen, a lead analyst from the Leave It in the Ground Initiative, stated: “Despite bold climate statements, UK banks continue to fund the very companies building the most destructive fossil fuel projects.”
Interestingly, HSBC stands out as the top financier, backing companies behind 104 of these carbon bomb ventures. In total, the potential emissions from these projects could exceed 392 gigatonnes of CO₂. Meanwhile, Standard Chartered supports firms linked to 75 such projects, followed by Barclays (62), Lloyds (26), and NatWest (20).
Furthermore, Lucie Pinson, director of the campaign group Reclaim Finance, argues that the City of London has become Europe’s stronghold for fossil fuel finance. She warned: “These banks must choose whether they will support Trump-era fossil policies or lead a genuine ecological shift.”
In addition, she stressed that continued fossil fuel financing undermines the UK’s international role in promoting climate finance and clean energy transitions.
When asked to comment, several banks questioned the methodology of the study. They claimed it was unfair to attribute full emissions from carbon bomb projects to general corporate financing.
However, researchers argued that such funding is still instrumental. Since banks usually fund companies as a whole rather than specific projects, this capital enables the development of high-emission ventures.
Barclays responded by noting its efforts to support the low-carbon transition, including a $1 trillion sustainable finance goal by 2030. Similarly, NatWest highlighted that its oil and gas lending accounts for less than 0.7% of its financing. It also pointed out that over £93 billion had already been invested in climate and sustainable finance since 2021.
On the other hand, HSBC, Lloyds, and Standard Chartered declined to comment on the report.
