Search Climate Insights Directory

The report 'Steeling Our Future' by Reclaim Finance analyzes the financing of the 100 largest steel producers, finding that banks provided US$429 billion to these companies between 2016 and June 2023. It highlights a critical gap between banks' climate commitments and their continued support for coal-based blast furnace (BF-BOF) production, which accounts for nearly 90% of steel sector emissions. The document argues that current decarbonization targets are insufficient and calls for an immediate end to financing for new blast furnaces and the relining of existing ones to avoid stranded asset risks estimated at US$554 billion. It advocates for a shift toward hydrogen-based direct reduction of iron (HDRI) and electric arc furnaces (EAF) powered by sustainable electricity.

This report by the Climate Policy Initiative examines India's climate adaptation financing, highlighting the significant funding gaps at the subnational level and proposing strategic interventions to mobilize public and private finance.

The document advocates for a radical shift in banking practices to support the energy transition, specifically calling for a 6:1 investment ratio in favor of sustainable power supply over fossil fuels. Based on IEA Net Zero Emissions (NZE) projections, the author argues that total annual energy sector investments must rise to US$4.7 trillion by 2030, with energy transition investments exceeding US$4.2 trillion. Reclaim Finance emphasizes that this ratio should specifically target sustainable technologies—solar PV, wind, grids, and storage—while excluding biomass, nuclear energy, and Carbon Capture Use and Storage (CCUS), which it deems too risky or damaging. The document concludes that banks should set specific targets for sustainable power, end all support for fossil fuel expansion, and incorporate the 6:1 ratio into credible climate transition plans.

The document argues that limiting global warming to 1.5°C requires a radical shift in financial flows, moving away from fossil fuel expansion toward sustainable energy. Based on IEA data, it proposes a 6:1 ratio for banks: investing six times more in sustainable electricity supply than in fossil fuels by 2030. It specifies that 'sustainable' energy should focus on mature technologies like solar, wind, grids, and storage, while excluding nuclear, biomass, and carbon capture (CCUS).

Reclaim Finance argues that TotalEnergies' climate strategy is insufficient for a 1.5°C target, citing continued fossil fuel expansion and inadequate low-carbon investment. The document details the financial networks supporting the company, critiques the 'laxity' of French asset managers like Amundi, and proposes a comprehensive suite of regulatory and monetary reforms to redirect financial flows away from fossil fuels.

The report by Trend Asia and Walhi Jambi opposes the planned PLTU MT Jambi 1 and 2 projects. It highlights that Jambi already experiences an electricity oversupply, with PLN's capacity at 2,415 MW against a demand of 1,333 MW. The document details the socio-ecological threats to local villages, such as Pemusiran and Lubuk Napal, including water pollution in the Sekamis and Selempado rivers and projected health costs of USD 640 million over 30 years for PLTU MT Jambi 1. It further notes that investors like China Huadian have reportedly withdrawn due to China's policy against building new coal plants abroad, and recommends the immediate cancellation of these projects in favor of renewable energy.

Reclaim Finance argues that Crédit Agricole's public commitment to renewable energy is insufficient without a clear plan to reduce fossil fuel financing. The organization highlights that the bank remains a top financier of TotalEnergies and continues to support fossil fuel developers, such as Eni. Reclaim Finance specifically calls for the bank to adopt a 6:1 financing ratio of sustainable to fossil energies by 2030 and to cease its advisory role in the Papua LNG project, which involves opening new gas fields.

Reclaim Finance asserts that the top 60 banks provided $122.2 billion to major LNG firms between 2016 and 2022, with most lacking policies to prevent further support. The report highlights that current LNG terminal developments could lead to a 235% capacity increase and 1.9 GtCO₂ of overshoot relative to IEA net zero goals. It criticizes European banks for continuing to finance import terminals despite exceeding current demand, risking long-term gas lock-in.

The Greenhouse Gas Reduction Fund (GGRF), established by the 2022 Inflation Reduction Act, provides USD 27 billion in grants to mobilize financing for GHG emissions reduction in the United States, specifically targeting low-income and disadvantaged communities (LIDACs). While the fund offers a transformative opportunity to align climate mitigation with economic development and climate justice, the report identifies significant barriers, including short implementation timeframes, varying operational capacities among community development financial institutions (CDFIs), and a shortage of skilled workforce and project pipelines. To overcome these, the report recommends catalyzing private capital through secondary markets and blended finance, standardizing underwriting and financial products, implementing a hub-and-spoke technical assistance framework, aligning government efforts across all levels, and establishing a collaborative 'sandbox' culture for systemic learning.

The 2024 Forest Declaration Assessment finds that the world is off track to meet 2030 goals to stop and reverse deforestation and degradation. In 2023, 6.37 million hectares of forest were permanently lost, with tropical humid primary forest loss 38% higher than required to be on track. Key drivers include unsustainable production of agricultural commodities and extractive industries, often fueled by demand from industrialized nations like China and the EU. While some progress is noted in forest governance and the expansion of protected areas, significant gaps remain in funding for Indigenous peoples and local communities. The report argues for a radical shift from exploitative consumption models toward circularity and rights-based governance to safeguard critical ecosystems.

The 2024 Forest Declaration Assessment finds that the world is far from meeting its 2030 goals to stop and reverse deforestation and degradation. In 2023, 6.37 million hectares of forest were permanently lost globally, with tropical regions in Africa and Asia failing to meet their targets. Primary forest loss remains alarmingly high, and forest degradation affects an area ten times larger than that of permanent deforestation. The report identifies unsustainable production and consumption—particularly of agricultural commodities, fossil fuels, and minerals—as primary drivers. While some progress is noted in countries like Brazil and Indonesia, and through new EU regulations like the EUDR, the report highlights a massive gap between 'green' and 'grey' financing, with trillions in harmful subsidies continuing to drive ecosystem loss. It emphasizes the critical role of Indigenous peoples and local communities, who face significant violence and limited direct access to funding despite their role as forest guardians.

The 2024 Forest Declaration Assessment finds that the world is off track to meet 2030 forest goals, with 6.37 million hectares of forest permanently lost in 2023. Deforestation is primarily driven by commodity production, including agriculture and mining, with significant demand from industrialized nations like China, the EU, and the U.S. While some progress has been made in forest law enforcement and the establishment of protected areas, the report highlights a massive gap between 'green' and 'gray' finance, noting that environmentally harmful subsidies reach USD 2.6 trillion annually. The assessment emphasizes the critical need for rights-based governance and direct funding for Indigenous Peoples and local communities to ensure sustainable forest management.

The report reveals a decline in international public finance for energy access, with electricity commitments peaking in 2018 and clean cooking funding showing extreme volatility. Significant regional and developmental disparities exist, with a heavy concentration of funds in a few countries like India, China, and Bangladesh, and a predominance of debt-based financing over grants. Case studies of Bangladesh and Kenya highlight that while both achieved significant access gains through concerted policy and financial efforts, they face ongoing challenges with system inefficiency and affordability.

Between 2015 and 2021, Indonesia's financial sector committed USD 41.7 billion in climate-aligned investments, representing 15% of the country's total climate finance needs. Public and private financial institutions contributed nearly equal annual averages (USD 3.5 billion and USD 3.4 billion, respectively), though private contributions represent only 3% of their total investments. While public finance is dominated by Development Finance Institutions targeting renewable energy, private finance is concentrated in the AFOLU sector, particularly certified sustainable palm oil. To meet 2030 targets, Indonesia faces a climate finance gap of approximately USD 145 billion, requiring climate-aligned investment to scale by at least 4.5x this decade.

Reclaim Finance challenges the claim that French banks are leaders in the ecological transition, noting that their financing ratio of sustainable electricity to fossil fuels (0.94:1) is far below the 6:1 ratio required by the IEA's Net Zero Emissions by 2050 scenario for 2030. The document highlights continued exposure to coal and hydrocarbons, specifically criticizing BPCE for lacking commitments to limit fossil fuel expansion and Crédit Agricole for supporting TotalEnergies' Papua LNG project.

The report examines the rise of private equity (PE) investment in the U.S. assisted living sector, highlighting a significant regulatory gap compared to nursing homes. It details the activities of major firms like KKR, Bain Capital, Harrison Street, and Kayne Anderson, who have deployed billions into senior housing through real estate funds and REITs. The author contends that the PE model of seeking high short-term returns is incompatible with long-term care, potentially leading to increased rents, reduced staffing, and diminished care quality for older adults.

The document identifies clean cooking as an "emergency brake" climate solution capable of reducing global cumulative emissions by 10% by 2040 if annual investments reach US$10 billion. It highlights the severe impacts of polluting fuels—including 3.2 million premature deaths annually and the emission of black carbon—while detailing co-benefits such as improved maternal and child health, reduced deforestation, and enhanced gender equality. The brief calls for a shift from case-by-case funding to innovative financing mechanisms and national-level policy integration to reach universal access by 2030.

The report argues that while healthcare facilities in South Asia and Sub-Saharan Africa face severe energy deficits and climate vulnerabilities, there is a strong climate rationale for investing in low-carbon and resilient technologies. It identifies various climate finance sources—including bilateral finance, multilateral funds, private foundations, carbon/REC markets, and green bonds—and analyzes the barriers to accessing these funds, such as high transaction costs for small-scale projects and limited local technical capacity. The document proposes a programmatic approach to aggregate facilities to achieve economies of scale and recommends integrating energy, health, and climate expertise to mobilize the necessary capital.

This report by the Climate Policy Initiative analyzes the climate finance landscape in South Africa, detailing the gap between current financial flows and the estimated needs required to meet national and international climate targets. It breaks down the sources, instruments, and sectoral allocations of climate finance, highlighting the dominance of private domestic investment and the clean energy sector.

The report finds that while CETP signatories have made progress in restricting fossil fuel finance, they have not yet fully prioritized clean energy support. In the first year of implementation, signatories moved USD 6.5 billion out of fossil fuels and USD 5.2 billion into clean energy, which is significantly lower than the estimated annual potential of USD 28 billion. The analysis reveals that most high-income signatories lack CETP-aligned policies that fully prioritize clean energy, and there is a widespread lack of provisions for fair and transformative financing, such as grant-based instruments for the countries most in need.