Trillions of dollars of fossil fuel finance routed via tax havens : study

A study by the Tax Justice Network has revealed that trillions of US dollars in bank finance to fossil fuel companies are being channeled through opaque financial centers, including the Netherlands. The research, published on September 11, scrutinized 60 global banks US$6.9 trillion of syndicated financing for fossil fuel companies from 2016 to 2023, encompassing loans, credit lines, and bonds. The study aims to expose the lack of transparency in funding for energy companies and highlights the issue of greenwashing, where banks and fossil fuel companies obscure the true extent of their investments in fossil fuels. The Netherlands has recently implemented reforms to counter its reputation as a hub for money flows to countries with low taxation rates. The Dutch finance ministry has taken steps to combat tax avoidance, targeting money flows through the country and addressing abusive structures. These efforts have led to a decrease in funds going to low-tax states. The study s authors emphasize the need for greater transparency in fossil fuel financing, as major banks face mounting pressure from investors and environmental campaigners to reduce their support for the fossil fuel industry. The study comes at a time when the world is experiencing its warmest northern hemisphere summer on record, with extreme weather events becoming more intense if planet-heating emissions are not curbed. Fossil fuel emissions, primarily from burning fossil fuels, are the main driver of climate change. The study s findings underscore the urgent need for increased transparency and accountability in the banking sector to address the environmental impact of fossil fuel financing. To stay informed on environmental, social, and governance (ESG) issues, consider subscribing to a newsletter that provides exclusive weekly reports on the latest developments in this field.

Source: businesstimes.com.sg
Published on 2024-09-11