CANBERRA: A new report reveals the exposure of Australia’s big banks to the fossil fuel industry, with ANZ the biggest lender.
The report by coal divestment lobby group Market Forces found that Australia’s big four banks – ANZ, National Australia Bank, Westpac and the Commonwealth Bank – lent $36.7 billion to Australian coal, oil and gas projects, making up one quarter of all loans since 2008 and around three quarters of deals recorded.
ANZ lent $12.6 billion in 99 deals to the fossil fuels industry between 2008 and 2014, the Commonwealth Bank lent $9.9 billion in 73 deals, NAB lent $8.3 billion in 75 deals and Westpac lent $5.9 billion in 59 deals.
ANZ was the biggest lender to the coal power and gas supply industry from 2008 to 2014. There was less enthusiasm for lending to renewable energy projects.
The report said that for every dollar loaned to the renewable energy industry since 2008 the big four banks lent nearly $6 to fossil fuels.
National Australia Bank lent $2.49 billion to renewable energy projects, ANZ lent $2 billion, Westpac lent $1.1 billion and the Commonwealth Bank lent $760 million.
Overall, between 2008 and 2014, $134.3 billion was lent to Australia’s fossil fuel industry by 150 commercial banks.
Big Japanese banks were the second biggest lenders with $27.4 billion in loans to the industry, while banks from the United States came third with $11.6 billion in funding.
A big increase in foreign investment in Australian oil and gas projects saw the big four Australian banks share of lending per year fall from 40 per cent in 2008 to less than 20 per cent in 2012 and 2013, but it rose again in 2014.
The report also said that government export credit agencies were prominent in lending to coal, oil and gas projects.
Julien Vincent, lead campaigner for Market Forces, said the big four Australian banks needed to change direction as calls for investors to get out of fossil fuel investment mounted.
“I think a lot of customers of the major banks will be really shocked to see just how prevalent their involvement is in this industry,” Mr Vincent said in an interview.
Market Forces used primary data from finance industry databases to compile the report, but said the report may not capture all lending to the coal, oil and gas industry.
