Search Climate Insights Directory

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 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.

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.

Indonesia's LPG subsidies are regressive, primarily benefiting wealthier households and straining the national budget. The report analyzes proposed targeting mechanisms, such as facial biometrics, and evaluates the climate impact of switching to electric induction stoves. By examining how India and Mexico implemented fuel tax increases and targeted social protections during economic crises, the report argues that Indonesia can leverage low oil prices to reform subsidies and redirect funds toward vulnerable populations.

Reclaim Finance argues that Engie is failing its climate ambitions by converting coal power plants to gas and biomass rather than transitioning to sustainable renewables. The document highlights specific conversions in Chile and a proposed gas project in Italy as evidence of a lack of strategic vision, while noting that Engie's current SBTi-certified target of 2°C is insufficient compared to the required 1.5°C trajectory.

Canada established a National Task Force in 2018 to manage the social and economic impacts of its 2030 coal power phase-out, which is expected to eliminate 42,000 jobs despite providing CAD 4.7 billion in economic benefits. The Task Force provided 10 recommendations covering governance, funding, and worker support, leading to the 2019 budget allocation of CAD 35 million for worker transition centers and CAD 150 million for a community infrastructure fund. While the initiative is noted for strong federal support and effective social dialogue, it faces challenges regarding the need for sustained, larger-scale funding over the next decade.

In 2020, a significant increase in coal plant development in China offset a global retreat from coal, leading to the first increase in global coal capacity since 2015. While China commissioned 38.4 GW of new capacity, the rest of the world saw a decline of 17.2 GW, driven by record retirements in the U.S. and EU27. South and Southeast Asian nations, including Indonesia, Bangladesh, the Philippines, and Vietnam, announced plans to cut up to 62 GW of planned coal power due to falling renewable costs and financing difficulties. Despite these regional shifts, the report finds that global coal capacity remains far above the levels required to meet the IPCC 1.5 degree pathway, with an estimated 1,350 GW needing to be cancelled or retired.

The report highlights a global divergence in coal power: while most of the world saw record closures and project cancellations, China experienced a significant boom in new capacity, offsetting global declines. In 2020, China's new coal capacity reached 38.4 GW, accounting for 76% of the global total. Conversely, the US and EU27 led in closures, with 11.3 GW and 10.1 GW retired respectively. In South and Southeast Asia, countries like Vietnam, Indonesia, the Philippines, and Bangladesh announced plans to cut up to 62 GW of planned coal capacity due to funding difficulties and the falling cost of renewables. The report also notes that global coal capacity is far exceeding the levels required to meet the IPCC's 1.5°C warming limit, with a projected 2,400 GW by 2030 compared to the required 1,100 GW.

The report finds that the 60 largest global banks provided $3.8 trillion in fossil fuel financing from 2016 to 2020. Despite a 9% drop in 2020 due to the COVID-19 pandemic, financing levels remained higher than in 2016. JPMorgan Chase is identified as the world's worst fossil fuel banker, with $317 billion provided over the five-year period. The analysis highlights a significant gap between banks' 'net zero by 2050' pledges and their continued funding of fossil fuel expansion, particularly in sectors like LNG, offshore oil and gas, and coal. The report also details the human rights and environmental impacts of specific projects, such as the East African Crude Oil Pipeline and the Line 3 pipeline, and argues that current bank policies are insufficient to align with the 1.5C goal of the Paris Agreement.

The briefing examines how the IFC's Green Equity Approach (GEA) fails to prevent continued fossil fuel finance through financial intermediary clients. It highlights cases where GEA clients funded new coal plants and identifies significant IFC equity exposure to oil and gas projects globally. The authors call for a public review of the GEA and a total phase-out of fossil fuel finance in IFC's financial intermediary portfolio.

Reclaim Finance argues that Engie's plan to exit coal is a 'non-annonce' because it prioritizes selling assets or converting them to gas and biomass instead of ensuring full closures. The organization warns that converting to gas or biomass fails to align with climate science and risks creating stranded assets. Furthermore, the document claims that selling plants does not reduce global CO2e emissions and that Engie's current 2°C target is insufficient to reach carbon neutrality by 2050.

Reclaim Finance evaluates Santander's February 2021 policy updates, noting a commitment to 0% thermal coal mining exposure by 2030 and new exclusions for unconventional oil and gas. However, the organization argues these measures are 'too little too late,' citing a high 10% revenue threshold for coal power exclusions and a lack of immediate exclusion criteria for existing coal developers, which allowed the bank to channel $5.7bn to 25 coal companies between 2018 and 2020.

Reclaim Finance criticizes Aviva Investors for allowing fossil fuel companies up to three years to develop net zero plans, arguing that this delays urgent divestment. The statement highlights contradictions in Aviva's policy, specifically noting continued investments in coal developers like BHP Group and Glencore, and significant holdings in Polish coal and gas companies such as PGE and PGNiG through third-party managed assets.

The analysis asserts that the current environmental acquis of the Energy Community Treaty is inadequate to prevent biodiversity loss and water deterioration caused by energy projects. It recommends the adoption of selected articles from the EU Birds, Habitats, and Water Framework Directives, arguing that such measures would not impose significant additional burdens since many Contracting Parties already have existing obligations under the Bern Convention or EU accession processes. The document details the specific risks posed by various energy sources—including coal, nuclear, wind, and hydropower—and provides a tailored legal framework for implementation within the Energy Community.

The report examines the economic advantages of aggressive decarbonization in China, highlighting that solar and wind power have become more cost-competitive than coal. It argues that a faster transition to clean energy will enhance China's global export position in solar PV and electric vehicles, reduce stranded asset risks associated with coal, and provide significant co-benefits in air quality and energy security. The authors advocate for peaking emissions by 2025 and implementing a combination of carbon pricing, performance standards, and green finance to ensure a high-quality economic transition.

The document argues that while climate obstruction is well-studied in the Global North, it remains largely unexplored in the Global South. It proposes ten research themes to analyze how developmentalism, political leadership, transnational links, and domestic energy policies contribute to the delay of climate action. The authors highlight the role of 'organized hypocrisy' where sovereignty claims are used to shield unsustainable practices, and note the influence of external donors and the potential for green technology to create new socio-ecological injustices.

The report evaluates electricity data transparency in Asia and Oceania, scoring countries based on criteria such as time granularity, fuel-type breakdowns, and ease of access. It finds significant disparities in data quality, with some countries like Australia and India providing high-granularity data, while others like Indonesia, Vietnam, and Singapore suffer from poor timeliness or limited disaggregation.

The report finds that while renewable electricity generation in the EU is projected to nearly double by 2030, the current National Energy and Climate Plans (NECPs) are insufficient to meet the EU Commission's recommended 55% emissions reduction target. Seven countries—Belgium, Bulgaria, Czechia, Germany, Italy, Poland, and Romania—are identified as the primary barriers, collectively projected to be responsible for 80% of the EU's power sector emissions by 2030 due to continued reliance on coal and fossil gas.

The report finds that EU electricity demand nearly returned to 2019 levels by August 2020, leading to a surge in coal generation. This trend was exacerbated by record low nuclear output in France, which created a supply gap that wind and solar growth could not fully fill, resulting in coal generation reaching its highest level since March 2020.

The document details how climate variables from the Copernicus Climate Data Store (CDS) are integrated into the SAVi Energy model to quantify the impact of climate change on various power generation technologies. It provides a comprehensive literature review of how variables like temperature, wind speed, and precipitation affect the load factor and thermal efficiency of coal, gas, nuclear, biomass, hydro, solar, and wind power, as well as the efficiency of the electricity grid. The report includes a simulation for Johannesburg, South Africa, demonstrating that rising temperatures and changing precipitation patterns can significantly reduce the load factor and revenues for thermal and hydropower assets, while potentially increasing the load factor for wind energy.