Aerial view of an oil tank construction site with vehicles and machinery

Trends in fossil fuel financing

14 July 2021

As the world attempts to combat climate change, it’s increasingly holding banks accountable for investing in fossil fuels. So, what does this mean for investors, borrowers and fossil fuel-based assets?

 

Our Sustainable finance white paper explores the global trends against fossil fuel financing. It delves into the factors that are igniting this trend and the effect it has on the investment and growth of fossil fuel projects.

What is the future of fossil fuel financing?

We look at the pressure groups who are increasing their campaigns targeted at financial investments in fossil fuel projects. And how they’re convincing banks and borrowers to disclose data on energy use and carbon emissions.

Although this is the trend, our research shows that fossil fuel investments are likely to continue while it’s economically viable. But as pressure from policies and regulations mounts, investors and their borrowers may start to consider positive change and incorporate the principles of sustainability and decarbonization.

The COVID-19 pandemic might also impact investor and borrower decisions, as it spurred a decline in demand for fossil fuels in 2020. It could echo for many years, driving investments away from fossil fuels and towards diversified portfolios that consist of mature and commercially viable renewables.

Download our paper below to get the full picture. 

Headshot of Elizabeth Turk of Advisian

Elizabeth Turk

Social and Environmental Advisor

Elizabeth Turk is a chartered international environmental scientist with experience in project management, lenders advisory services, environmental and social due diligence and impact assessment. Her experience covers a wide range of sectors, but she specializes in the fields of energy transition, generation and distribution, downstream, upstream and infrastructure.

Headshot of Erica Bhasin of Advisian

Erica Bhasin

Decarbonization & Energy Transition Consultant

Erica Bhasin is chemical engineer by profession, currently working as an energy transition and decarbonization consultant at Advisian. She specializes in new energy, namely biofuels and green hydrogen, with experience in market studies, technology analysis, financial and commercial evaluation and due diligence.