Net Zero Financial Institutions Inconsistent with IEA 2050 Scenario

Banks and other financial institutions must end several existing financing activities to be consistent with the International Energy Agency’s Net Zero Emissions by 2050 Scenario (IEA NZE), according to a new report. Project finance for new fossil fuel reserves and coal-based power generation must be terminated, while firms must implement transition plans ending fossil fuel expansion to be eligible for corporate finance, said the report from the Oxford Sustainable Finance Group and the Smith School of Enterprise and the Environment. The report also includes case studies highlighting the inconsistencies of current financing practices by financial institutions committed to net zero with the IEA NZE scenario.

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