Baku, Nov 14: As the UN climate conference (COP29) is underway in Baku in Azerbaijan, the Global Alliance for Banking on Values (GABV) on Thursday announced that 25 of its member banks have endorsed the Fossil Fuel Non-Proliferation Treaty initiative, marking the first collective endorsement of the initiative by financial institutions.
The treaty is a proposal for a global binding plan to end the expansion of new coal, oil and gas projects, and manage a global transition away from fossil fuels.
Founded in 2009, the GABV is a network of 70 sustainable banks operating across all major world regions, united by a mission to “finance change and change finance”. By endorsing the proposal for a Fossil Fuel Non-Proliferation Treaty, these 25 GABV members are urging the financial sector to take meaningful action in the fight against climate change by ending finance for fossil fuel expansion.
They collectively manage $117 billion in assets and serve over 11.3 million people worldwide. The GABV’s member banks represent some of the most ambitious examples of sustainable finance.
For instance, Triodos Bank, the first bank in the world to sign up to the treaty initiative, has been the leading lender for clean energy projects for eight consecutive years. GABV members are setting ambitious targets to achieve net-zero emissions as early as 2035, demonstrating that sustainable finance is not only possible but essential.
Martin Rohner, Executive Director, GABV said, “Despite frequent and often high-profile commitments, many mainstream banks continue to finance the fossil fuel industry, fuelling further unpredictable climate impacts.
If the financial sector is serious about its sustainable commitments, it should support initiatives like the treaty that are creating real solutions to the crisis. “A treaty will help create a resilient business climate, built on a long-term perspective and a level playing field, which is in the interest of businesses and financial institutions wherever they are in the world.”
Tzeporah Berman, Chair and Founder of the Fossil Fuel Non-Proliferation Treaty Initiative, said: “The support from a growing number of banks for the Fossil Fuel Treaty reflects true leadership in the financial sector and a recognition that phasing out fossil fuels is not only desirable but achievable.
“These visionary banks are boldly stepping up as leaders in the fight against the climate crisis, recognising their vital role in driving a just and equitable transition away from fossil fuels.” The 2015 Paris Climate Agreement recognised the financial sector as an enabler of the most ambitious climate-related goals.
Since then, every COP (Conference of Parties) has explicitly referenced the financial system’s role in supporting the just transition. Moreover, this COP29 has been dubbed the “Finance COP,” marking the critical moment for wealthy countries to fund the fight against climate devastation.
IANS