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The report finds that international public finance disproportionately supports natural gas over renewables in the Global South, creating risks of stranded assets and carbon lock-in. It argues that renewables are now cost-competitive for most gas uses and recommends that public financial institutions cease support for gas infrastructure to prioritize clean energy transitions.

Mighty Earth alleges a significant gap between Sumitomo Corporation's public commitment to carbon neutrality by 2050 and its actual business practices. The report highlights Sumitomo's role in importing wood pellets from the US and Canada, which it claims destroys old-growth forests and increases CO2 levels. It also criticizes the company's ongoing development of coal-fired power plants in Southeast Asia, particularly in Bangladesh, noting that these projects cause severe local pollution and human rights issues. Financially, the report notes that Sumitomo has suffered substantial losses from coal-related assets, arguing that the company must accelerate its transition to renewable energy to avoid further stranded assets and environmental destruction.

The report warns that 11 major Eurozone banks hold over 530 billion euros in fossil fuel assets, representing 95% of their total equity. It argues that these assets are prone to becoming 'stranded assets' as the world transitions to meet the Paris Agreement, potentially triggering a financial crisis similar to the 2008 subprime mortgage crisis. The authors critique 'green finance' as largely greenwashing and call for the European Central Bank (ECB) to align its monetary policy with climate goals, increase capital requirements for fossil fuel exposure, and establish a public 'bad bank' to manage the phased extinction of these assets.

The report warns that the 11 largest banks in the eurozone hold over 530 billion euros in fossil fuel assets, which represent 95% of their total equity on average. This overexposure creates a significant risk of 'stranded assets' as the world transitions to meet Paris Agreement goals. The authors argue that current 'green finance' is largely a greenwashing tool and that voluntary bank commitments are insufficient. They propose a two-step solution: first, implementing strict regulations and reforming European Central Bank (ECB) monetary policy to stop new fossil fuel funding; second, establishing a public 'fossil bank' under the ECB to buy back and gradually phase out these risky assets to protect financial stability and enable the ecological transition.

The document examines how the global shift toward low-carbon energy, driven by the Paris Agreement, creates a risk of stranded assets for fossil fuel-dependent African nations. While this transition threatens export revenues and economic stability, it offers opportunities through increased demand for critical minerals like cobalt and copper. The author argues for a 'just transition' that avoids premature deindustrialisation and leverages fossil fuel revenues for economic diversification and green industrialisation.

The analysis finds a growing trend of countries incorporating fossil fuel production into their national climate communications, with some establishing pathways for managed decline. However, a significant number of countries still plan for continued or expanded production, and many fail to address the equity and economic diversification needs of a just transition.

The analysis of 29 long-term climate strategies reveals a general commitment to Paris Agreement goals and a growing trend toward 'net-zero' targets regardless of a country's economic development. While these strategies typically include mitigation modeling, near-term targets, and considerations for a just transition, the paper notes that many nations still need to submit strategies or require support for implementation.

The paper argues that while DFIs have focused on aligning direct project financing, they must also address 'indirect' investments via financial intermediaries to meet global climate goals. It proposes a four-pillar framework—mitigation, adaptation, governance, and transparency—implemented in two phases over a maximum of five years. The framework suggests sector-specific exclusion lists, physical climate risk screenings, institutional climate governance, and TCFD-aligned reporting. It also recommends a risk-tailored approach to investment instruments, suggesting that general purpose loans and equity be restricted to FIs already meeting alignment criteria, while special purpose vehicles (SPVs) can be used for clients committed to the principle of alignment but lacking immediate capacity.

Power Forward 4.0 finds that 60% of Fortune 500 companies have set at least one climate or energy target, a 12-percentage-point increase since 2017. While GHG reduction targets are most common (54%) and Science-Based Targets (SBTs) have increased sixfold, only 20% of the Fortune 500 have set or committed to an SBT. The report highlights a rise in net-zero commitments (17%) and 100% renewable energy targets (58 companies), though it notes significant gaps in the financial, fossil fuel, and retail sectors. Despite progress, the report argues that voluntary action is insufficient and calls for federal and state policies, such as carbon pricing, to align the US private sector with the Paris Agreement and the US Nationally Determined Contribution.

Reclaim Finance criticizes Natixis for continuing to support oil and gas majors and shale energy infrastructure despite overall reductions in fossil fuel financing. The statement highlights gaps in the bank's exclusion policies, its role as a top French investor in high-production shale companies, and the lack of fossil fuel policies across several of its investment management subsidiaries.

The report examines the rise of ESG (Environmental, Social, and Governance) regulations to combat greenwashing, highlighting the EU's Sustainable Finance Disclosure Regulation (SFDR) as a key driver. It argues that ESG-aligned funds are outperforming non-aligned ones, making ESG compliance essential for accessing global capital. This shift poses a significant risk to fossil fuel-dependent firms, especially in Africa, while benefiting those providing minerals for renewable energy, provided they adhere to genuine sustainability principles.

Reclaim Finance criticizes Lloyd’s of London for maintaining a coal policy that allows new insurance cover for coal plants and thermal coal mines until January 2022, potentially enabling projects like the Whitehaven mine in England and Adani’s Carmichael project in Australia. The author highlights gaps in the policy, specifically the lack of exclusions for coal transport infrastructure and coal developers, and argues that the 30% revenue threshold for phasing out thermal coal by 2030 is too high and too slow compared to other European insurers.

The statement asserts that while protecting and restoring ecosystems is essential to meeting the 1.5-degree Celsius goal of the Paris Agreement, natural climate solutions must not be used as a substitute for rapid decarbonization. It calls for strict guardrails on offsets and encourages investors to demand transparency regarding corporate transition plans and the specifics of carbon credit sourcing.

Reclaim Finance assesses JPMorgan Chase's (JPMC) 2030 portfolio targets, concluding that while the inclusion of underwriting and the setting of interim targets are positive, the oil and gas targets are unacceptably weak. The document highlights that JPMC provided $317 billion in fossil fuel finance between the Paris Agreement's adoption and the end of 2020. It argues that JPMC's reliance on emissions intensity metrics rather than absolute emissions reductions allows for continued support of fossil fuel expansion, citing JPMC's financing of Total and ExxonMobil as examples.

Reclaim Finance calls on the Paris financial center to lead a global transition by ending support for fossil fuel expansion. The letter argues that to limit warming to 1.5°C, oil and gas production must decrease annually, and financial actors should exit non-conventional sectors by 2030 and all oil and gas by 2040 in the OECD and 2050 globally.

The Framework for Sustainable Finance Integrity is a consultation draft designed to provide guardrails for the financial sector's move toward net zero and sustainability. It identifies a gap between the proliferation of individual financial coalitions and the actual pace of real-economy impact, noting that current commitments may not align with a net zero trajectory. To address this, the framework establishes benchmarks across three categories: targets and objectives, implementation, and metrics and transparency. It also introduces investment blueprints for Recovery Bonds and Results-based Financing to facilitate cross-institutional collaboration.

Reclaim Finance assesses Maybank's May 2021 announcement of its first coal sector financing exclusions, concluding that the policy is too limited because it focuses on new coal mining rather than new coal plants and lacks a phase-out commitment. The analysis notes that Maybank provided at least US$1.7 billion to the coal sector between 2018 and 2020 and currently supports companies planning 13.2 GW of additional coal capacity. The author urges Maybank to end all support for coal expansion and exit the sector by 2040.

The World Resources Institute critiques the World Bank Group's draft Climate Change Action Plan, asserting it falls short of the urgency required by the Paris Agreement. The briefing recommends that the World Bank Group implement a numeric emissions cap, phase out fossil fuel financing—specifically natural gas—and prioritize climate resilience through better project design and staffing. It further suggests improving climate finance reporting to measure actual impact rather than just financial inputs and providing more technical resources to low- and middle-income countries to help them develop projects that move beyond 'business-as-usual' development.

The paper identifies four essential functions for the Global Stocktake (GST)—acting as a policy pacemaker, ensuring accountability, driving ambition, and signaling commitment—while highlighting data gaps in NDC emissions quantification as a primary challenge. It proposes that the UNFCCC maximize GST effectiveness through public appraisals, the use of performance distributions for collective assessments, sectoral discussions in expert dialogues, and IPCC-led benchmark identification, supplemented by independent civil society and academic analysis.

Reclaim Finance criticizes Aviva for failing to align its financial activities with the 1.5°C climate goal, highlighting the company's continued investment in coal, oil, and gas developers. The statement calls for Aviva to close loopholes in its coal exclusion policy and commit to ending support for fossil fuel expansion before COP26.