Just last month, the Spanish #bank BBVA announced a new €700 billion target for #sustainable business between 2025 and 2029.
But what do these figures really mean for the #decarbonization of the real economy? Could they mask #climate inaction?
🧵A thread on our new analysis. ⤵️
But what do these figures really mean for the #decarbonization of the real economy? Could they mask #climate inaction?
🧵A thread on our new analysis. ⤵️
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(See full analysis: https://sustainabilitypolicytracker.org)
These targets span multiple sectors (from #energy to agriculture to education) and serve a different purpose.
1️⃣ Focus on the power sector.
2️⃣ Aim at a 6:1 energy supply financing ratio.
Here is how:
This sector is the main driver of decarbonization of the global economy.
According to the @iea.org Net Zero Emissions scenario, x3 global renewable energy capacity (2023 - 2030) will deliver the largest emissions reductions compared to other decarbonization levers.
❌ However, only eight of the world's 60 largest banks have set power financing targets for alternatives to #FossilFuel power—even though the power sector is often included in their #SustainableFinance targets.
To be coherent with a net-zero trajectory such as the IEA’s #NZE scenario, banks should allocate $6 to sustainable alternatives for power supply for each dollar allocated to fossil fuels, by 2030.