The Glasgow Financial for Net Zero (GFANZ) was championed in 2021 as a coalition of financial institutions committed to upholding the Paris Agreement (limiting temperature increases to 1.5 degrees celsius from preindustrial levels).
Ahead of this year’s global climate summit, the group released a new accountability tool to track and ensure commitments are being acted upon.
At last year’s global climate summit in Glasgow, they had promised to end or offset any greenhouse gas emission endeavors by 2050 and provide $130 trillion towards the green transition, many members continued to fund fossil fuel-related projects and industries.
56 or more of the most prominent members have contributed $270 billion to the expansion of 102 fossil fuel companies with 215 underwriting arrangements and 134 loans. These methods are referred to as loopholes to their promises since they indirectly develop fossil fuels using corporate finances and investments.
The recent pledge means that the group’s over 550 members would follow the United Nations criteria detailing them to phase out fossil fuels. These members include banks, insurers, and investors applying these protocols throughout business models and the financial sector.
Climate activists ensure the accountability tool is “critical”, but there are still concerns that loopholes will continue since fossil fuels are back to being more profitable than renewable resources:
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