Shifting finance has emerged as a key strategy in the global effort to transition from fossil fuels to clean energy. Policies adopted by financial institutions to limit support for fossil fuels are having a direct impact in the real economy, driving up the cost of capital and shifting the cost/benefit equation for new projects.
To a significant extent, the availability and cost of finance and other financial services will determine whether the pipeline of new fossil fuel projects is built and how quickly existing infrastructure is retired. At a wider level, the political and policy signals sent by the finance industry, combined with their muscle as active owners of the global economy, have the potential to create a potent countervailing force against the lobbying power of the fossil fuel industry and to shift the political and economic context that shapes government climate policies.
Programs
We work with diverse networks of partners on the following programs:
Insurance – encouraging the world’s largest insurance and reinsurance companies to stop underwriting fossil fuels.
Investors – supporting networks to drive an assertive investor climate agenda and encourage the largest asset managers to drive the transition from fossil fuels to clean energy.
Banks –holding the world’s largest banks accountable for their role in driving the climate crisis through fossil fuel lending.
Central banks and financial regulation – improving regulation of the financial system to better factor in climate risk and to limit the flow of finance to fossil fuels.
Chinese overseas finance –supporting global networks to raise awareness of China’s role in financing fossil fuel expansion in other countries.
Private Equity – moving the world’s largest private equity firms to stop investing in the expansion of fossil fuels, divest from current fossil-based holdings, and invest in renewable energy and worker transition at scale to meet a Paris-aligned future.
Automakers – encouraging major automakers to accelerate the EV transition and end fossil fuel-use in their carbon-intensive supply chain.
Bonds – encouraging bondholders, underwriters and credit rating agencies to stop buying and facilitating the debt of fossil fuel companies.