HOT MONEY (2021)
This briefing paper looks at Export Finance Australia and NAIF's financing of fossil fuels. As private banks shy away from lending to fossil fuel projects, public project financing banks are taking on more risk by helping coal, oil and gas projects get off the ground. The paper finds that between 2009 and 2020, EFA provided between $1.57 and $1.69 billion in financing to coal, oil and gas projects (including refinancing), and gave around 80 times as much financial support to fossil fuels as to renewable energy projects. NAIF has also supported two sizable fossil fuel investments and is arguably being positioned to fund more in the future.
If Australia is to meet its commitments under the Paris Agreement, and be part of a global move to limit warming to 1.5°C, it is essential that EFA and NAIF stop financing fossil fuel projects.
If Australia is to meet its commitments under the Paris Agreement, and be part of a global move to limit warming to 1.5°C, it is essential that EFA and NAIF stop financing fossil fuel projects.