Australia- National Australian bank pledge to cap lending to oil and gas at US $2.4 bn, however, market forces call it a ‘’ cynical greenwashing exercise’’. On the other hand, environmental activists believe the project is full of loopholes that allow the bank to continue funding fossil fuel businesses. Despite, new commitment from NAB to limit funding, it doesn’t seem to be effective.

The bank said on Tuesday, it would cap its lending to oil and gas at US$2.4 bn- a figure that NAB’s Chief executive, Ross McEwan, said the bank was currently ‘’a couple of hundred million below’’.

It will directly fund new gas extraction projects in Australia’’ where it plays a role in underpinning national energy security’’. Meanwhile, it will not finance any projects outside of the country. The bank issue a new policy alongside its 2021 financial results. Also, it will continue to fund integrated liquefied natural gas projects within the country.

Activists response

Jack Bertolus, a campaigner at activist investor group Market forces said, he is very disappointed with this new commitment of NAB. Jack thinks that it contained ‘’ tonnes and tonnes of loopholes and room for the bank to continue as usual’’.

 ‘’ The IEA’s report provides clear red lines around the projects that can’t proceed under the scenario and the police doesn’t reflect that whatsoever’’.

Furthermore, he said that NAB must withdraw its commitment to net-zero by 2050. Until it can put in place some meaningful commitment that would align it with that.’’

‘’it’s NAB allowing itself to continue to fund the fossil fuel sector. It’s just cover, it’s cynical greenwashing exercise.’’

Among the banks, NAB and McEwan were the first to pledge to reduce oil and gas lending. They were committed to spending more energy and time on the renewable sector. The bank said, ‘’ we have no intention of being involved in any greenwashing whatsoever. We intend to participate in helping Australia to get into a much better position from a carbon emission perspective.’’