Comments on June 2022 consultation draft of GFANZ document: “Financial Institution Net-Zero Transition Plans: Recommendations and Guidance”

Reclaim Finance argues that the GFANZ consultation draft lacks sufficient rigor and clarity, specifically regarding 2030 emission reduction targets, the cessation of fossil fuel expansion, and the definition of net zero. The organization advocates for the adoption of Race to Zero (RTZ) criteria, including a 50% reduction in financed emissions by 2030 and the requirement for permanent carbon removals (at least 1,000 years) to neutralize residual emissions. Reclaim Finance further challenges the classification of fossil gas as a transition fuel and calls for more stringent accountability mechanisms, such as the exclusion of financial institutions from alliances if they fail to implement credible, RTZ-aligned transition plans.

• The GFANZ draft fails to sufficiently emphasize the necessity of a 50% reduction in financed, facilitated, or insured emissions by 2030 to align with 1.5°C goals, mentioning it only once in a footnote.
• Reclaim Finance asserts that credible transition plans must require an end to the financing and facilitation of new fossil fuel supply projects, noting that the draft only mentions this once under "Exclusions".
• The document argues that the definition of Net Zero is insufficient because it omits the requirement that residual emissions be neutralized via "like-for-like removals" that are permanent for at least 1,000 years.
• Reclaim Finance rejects the characterization of fossil gas as a "transition" fuel, citing evidence that its Scope 3 emissions are not reducing sufficiently and that existing fossil fuel infrastructure already exceeds the cumulative CO2 emissions allowed for 1.5°C pathways.
• The organization recommends that GFANZ implement strict accountability mechanisms, including the potential exclusion of members from alliances if they do not adopt Race to Zero-aligned transition plans.
• The draft's definition of "climate solutions" is criticized for being too narrow and focused on technology, ignoring non-technological solutions such as urban planning and the protection of Indigenous People's land rights.
• Reclaim Finance identifies the use of mtCO2e/$ revenue as a "highly problematic and misleading metric" because it can show falling emissions for the oil industry simply due to rising oil prices.
• Regarding carbon credits, the document argues that avoided emissions and biological sinks are problematic and should not be used to offset Scope 3 emissions, which are the most significant for financial institutions.

APA

Reclaim Finance (2022). Comments on June 2022 consultation draft of GFANZ document: “Financial Institution Net-Zero Transition Plans: Recommendations and Guidance”. https://reclaimfinance.org/site/wp-content/uploads/2022/07/GFANZ-NZ-Transition-Plans-Comments-2.0.pdf

Chicago

Reclaim Finance. Comments on June 2022 consultation draft of GFANZ document: “Financial Institution Net-Zero Transition Plans: Recommendations and Guidance”. 2022. https://reclaimfinance.org/site/wp-content/uploads/2022/07/GFANZ-NZ-Transition-Plans-Comments-2.0.pdf.

Wikipedia

{{cite press release |author=Reclaim Finance |title=Comments on June 2022 consultation draft of GFANZ document: “Financial Institution Net-Zero Transition Plans: Recommendations and Guidance” |date=19 July 2022 |url=https://reclaimfinance.org/site/wp-content/uploads/2022/07/GFANZ-NZ-Transition-Plans-Comments-2.0.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{reclaimfinance2022comments, author = {{Reclaim Finance}}, title = {{Comments on June 2022 consultation draft of GFANZ document: “Financial Institution Net-Zero Transition Plans: Recommendations and Guidance”}}, publisher = {Reclaim Finance}, year = {2022}, month = jul, url = {https://reclaimfinance.org/site/wp-content/uploads/2022/07/GFANZ-NZ-Transition-Plans-Comments-2.0.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }