Finance Sector Urged to Stop Funding LNG

Private equity firms, large banks and insurance companies have been asked to stop backing liquefied methane gas (LNG), in line with recent US policy changes. Sierra Club, Texas Campaign for the Environment, Rainforest Action Network and Friends of the Earth were among the 100 advocacy groups that drafted letters calling to end financial support for the sector. The organisations cited financial and reputational damage as potential risks that could stem from continued funding of LNG, targeting entities such as Citi, Bank of America, Royal Bank of Canada, Mizuho, Chubb, Liberty Mutual, and KKR. The latest edition of Banking on Climate Chaos – an annual report published by a coalition of civil society groups – showed that the world’s top 60 banks had provided US$122 billion in loans and bond underwriting to LNG projects and companies involved in the sector since 2016. An estimated 86% of US-based operating LNG export terminals currently have private equity financing. “US regulators are finally reevaluating their approach to the dangerous and destructive methane gas industry,” said Adele Shraiman, Senior Campaign Strategist for Sierra Club’s fossil-free finance campaign. “With the Department of Energy stopping the rubber-stamping of new LNG export projects to consider their full impact on our climate, communities and economy, it’s time for the financial sector to do the same. The message is clear: there is no place for LNG expansion in a net-zero future.”

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top