Australia's major banks have invested over $61 billion into fossil fuels since the Paris Agreement was signed eight years ago. 

According to a report by shareholder activist group Market Forces, ANZ, NAB, Commonwealth Bank of Australia, and Westpac collectively loaned $3.6 billion to fossil fuel companies in 2023. 

Notably, $2.5 billion of this was directed towards firms expanding their coal, oil, and gas operations. 

This finding is particularly striking given the consensus among leading experts, including the International Energy Agency and the Intergovernmental Panel on Climate Change, that meeting the Paris Agreement’s objectives necessitates a halt to new coal, oil, and gas projects.

While the total funding from the big four banks to fossil fuels was nearly halved from 2022 to 2023, a substantial portion of the remaining finance was allocated to companies with expansion plans in these sectors.

The analysis revealed ANZ as the top fossil fuel financier among the banks, with over $20 billion in loans to the industry since the Paris Agreement's inception. In 2023 alone, ANZ provided nearly $1 billion to companies developing new fossil fuel projects.

NAB emerged as the leading Australian fossil fuel lender for 2023, with loans amounting to $1.4 billion, of which $860 million was for companies planning to expand coal, oil, and gas operations. 

Although NAB has taken steps to address shareholder concerns regarding greenwashing, significant policy changes may be required.

Commonwealth Bank saw a slight increase in fossil fuel lending from 2022 to $271 million in 2023, maintaining its position as the smallest lender among the big four. Despite this, it financed APA Group, which is planning to develop gas pipelines in the Beetaloo basin, a project known for its substantial carbon footprint.

Westpac allocated $784 million to fossil fuels in 2023, with $533 million going to companies expanding fossil fuel production, including JERA and APA Group.

The report says 2023 marked the first year since the Paris Agreement when none of the big four banks directly financed new or expanded fossil fuel projects. 

However, almost 70 percent of their fossil fuel lending in 2023 was to companies not aligned with their climate commitments. 

It also identified general-purpose corporate lending and bonds as indirect methods banks use to finance companies involved in new and expanded fossil fuel developments.

“The big four banks are engaged in a monumental facade as long as they continue undermining a safe climate by funnelling billions to companies steaming ahead with more coal, oil and gas,” says Kyle Robertson, Banks Analyst and report author for Market Forces.

The report included details of significant bank deals with companies like Japan’s JERA, APA Group, Santos, Glencore, and BHP, all of which are heavily involved in fossil fuel expansion. 

ANZ and Westpac were noted for their substantial funding of fossil gas projects across Asia, which could hinder the transition to clean energy essential for meeting climate goals.