Climate emergency ignored as banks double down on coal and gas

While communities burn and flood, big banks continue to fund coal and gas expansion, writes Kyle Robertson.

AUSTRALIANS are experiencing another scorching summer of deadly and terrifying bushfires, heatwaves and floods.

The world experienced the three hottest years in history World Meteorological Societyand the effects of the climate crisis are worsening. But some of Australia’s biggest banks and super funds are failing us all by pouring money into new coal, oil and gas, fueling devastating climate disasters.

Climate change is wreaking havoc and increasing the cost of living for Australians in all walks of life, from cities to the most remote rural communities. Insurance premiums are increasing due to the increasing frequency and intensity of unnatural disasters. An increasing number of homes and properties are becoming uninsurable; more than one seventh (15 percent) Households experiencing insurance affordability stress in 2024.

Climate-related disasters cost Australians $4 billion a year, and this figure is expected to rise to $35 billion by 2050. Climate Change Authority. The Australian housing market, which forms the basis of our economy and lifestyle, is expected to lose a staggering $500 billion in value by 2030. Almost 7 million Australians living on the fringes of our capital cities are increasingly at risk of urban fires similar to the catastrophic fires we saw in Los Angeles last year, according to a report. new Climate Council report.

Farmers in our regions are in a difficult situation due to forest fires, floods and extreme drought. Many can’t insuring their farms Due to large increases in premiums in recent years and some insurance bills in the north $100,000.

But as climate disasters wreak havoc on communities in every corner of the country, some of our largest financial institutions are supporting the activities that are fueling these disasters, while passing the costs on to Australians enduring a cost-of-living crisis.

Big banks and pension funds have continued this appalling behavior despite their public commitments to honor climate targets. Paris AgreementThis requires ending support for new fossil fuels and accelerating cleaner, cheaper renewable energy.

When the world signed the agreement Paris Agreement More than a decade ago, the consensus was that limiting the worst effects of global warming required major cuts in greenhouse gas emissions. Including scientists and expert organizations International Energy Agency And Intergovernmental Panel on Climate ChangeIt confirmed that fossil fuel production, the largest source of emissions, must be rapidly reduced.

Instead, he went the other way. According to estimates Global Carbon BudgetWith the support of big banks and investors, including our super funds, global fossil fuel emissions are expected to hit a new all-time record in 2025.

according to International Energy AgencyFossil fuel companies have poured over $17 trillion into coal, oil and gas globally over the past decade. Earth’s annual average temperature in 2024 exceeded For the first time in history, there was an increase of 1.5°C compared to the pre-industrial period.

Make no mistake, we’re looking at just below catastrophic warming levels 3°C We are in this century unless we accelerate the transition from fossil fuels to clean energy. At least 800 million people It is at risk of displacement due to rising sea levels and flooding. Longer deadly heat waves to guess It will affect everyone in the world by 2050.

The major Australian banks, especially ANZ And Batıpaccontinue fund Plans for fossil fuel expansion by some of the world’s biggest polluters forest side, Santos And blood pressure.

Macquarie Group like that support One of Australia’s largest new gas fracking projects in the Northern Territory Beetaloo Basinthreatens clean water resources for farmers and freeing up emissions equivalent to operating Australia’s largest coal power plant, Deletionto the next century.

These banks echo the gas industry’s claim that more fossil fuels are needed to transition to clean energy. However, according to the report, there is no need to develop new gas supply to meet exports or domestic demand. Institute of Energy Economics and Financial Analysis. Simply put, we have enough gas already in production.

Our big banks control 80 percent Australia’s mortgage market. Providing financial support to companies developing fossil fuels is completely at odds with their moral and economic imperative to protect Australians and their homes from disaster.

Australia’s biggest super funds are also failing to protect us from the ravages of climate change, now and in the future. Top 30 funds 33 billion dollars It has invested in 200 of the world’s largest companies with fossil fuel expansion plans, more than three times the investment in major clean energy companies. Our biggest super funds are responsible for three of Australia’s biggest polluters – Santos, Woodside and Whitehaven Coal.

Superfunds have a duty to act in the best financial interests of their members, but they are fueling wildfires and other disasters and putting a safe and prosperous retirement at risk by failing to rein in Australia’s major climate polluters.

It is time for our financial institutions to heed the emergency alarms and stop funding and enabling the expansion of fossil fuels. In particular, the increasing social, environmental and financial costs are being passed on to ordinary Australians.