Net-Zero Banking Alliance Urged to Not Provide Support to Gas Projects

By March 10, 2023March 16th, 2023Gulf of Mexico

A group of global organizations, wrote to the chair of the Net-Zero Banking Alliance (NZBA), as well as NZBA members, urging the NZBA to refuse direct or indirect involvement of two South Texas fracked gas export projects. The group of 37 global organizations wrote the NZBA to not support the Texas LNG, Rio Grande LNG and Rio Brave projects, as well as committing to not provide lending, capital markets, or advisory services to the gas projects.

The projects in Texas would hurt local populations, violate Indigenous rights, damage ecosystems, and lock in decades of greenhouse gas emissions that would contribute to climate warming.

The NZBA is global group of banks, currently representing over 40% of global banking assets. The NZBA was convened by the United Nations, are committed to aligning their lending and investment portfolios with net-zero emissions by 2050.

Having pledged to align financing with global climate goals, the support of gas projects runs contrary to this aim. The world’s preeminent energy and climate experts have repeatedly affirmed that continued expansion of fossil fuels is fundamentally incompatible with reaching the goal of net-zero emissions by 2050. The NZBA must ensure its members are following through on their own climate pledges, and not financing catastrophic fossil fuel expansion projects.

You can read the letter in its entirety, as well as read more about the threats posed by the planned LNG terminals and pipeline here.