| |
|
| 29. Sep, 2025 |
  |
Banks are backing away from climate commitments, and it's not just due to politics—it's the harsh reality of economics. A new study reveals that the Net Zero Banking Alliance collapsed primarily because of high costs and risks associated with decarbonization, which never made strong business sense.
Researchers from UMass Boston and Tel Aviv University, after interviewing over 80 executives, found that fossil fuels remain highly profitable, especially with events like the Russia-Ukraine war driving up energy prices. Companies like BP and Shell, which pushed aggressive climate targets, suffered financially and shifted back to oil and gas.
The study highlights how investor-driven climate governance was more myth than effective mechanism, with commitments often decoupled from real emission reductions. Meanwhile, political risks amplify the issue: in places like the UK, governments can cancel subsidies, and with parties like Reform UK gaining traction, green energy loans could become toxic assets. Fossil fuel companies, in contrast, adapt more easily to political changes without relying on handouts.
This retreat underscores the flawed foundation of net-zero alliances—they were never viable and exposed banks to unnecessary risks in an unstable world.
To read the full article go to
|
Gallery:
![]() Comments 0
NOTE: The Newsexchange site assumes no responsibility for commenters and the content they post. As a last resort, comments are deleted or the option to comment is turned off ...
|
|
|
|
Galerija:
|
|
Date: 29. Sep, 2025 
168 views, 
0 comments
