Coal-based energy production got a boost from investors globally in 2024 after a dip during 2023 according to Bloomberg.
“Global banks channeled more than $385 billion to the coal power industry over the past three years, with annual flows increasing last year from 2023, according to analysis by a group of nonprofits…
Chinese banks are the top providers of coal-related financing, allocating almost $250 billion to the industry between 2022 and 2024, according to Urgewald. US banks are second with just over $50 billion in total, led by Bank of America Corp., JPMorgan Chase & Co. and Citigroup Inc.”
Source: Bloomberg.
The article also pointed out that “[w]hile the pipeline of new coal projects is dwindling, the existing fleet of coal plants isn’t” – so emissions aren’t changing as planned.
Energy needs for AI data centers, a new development subsequent to most companies and countries setting their emissions reduction targets, certainly play a role in this change in direction – but not all the blame can be placed at AI’s virtual feet.
We’ve cautioned in the past about meeting Scope 2 emissions targets. Now it looks like there are 130 billion more reasons why you should reassess yours.
Members can read more about carbon management here and have access to our Checklist Identifying & Updating Climate Risks and Uncertainties.
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