Australia's biggest bank pushes for climate action

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♻️ This week’s sustainability news

Australia’s biggest bank tightens fossil fuel financing

What’s happening: The Commonwealth Bank of Australia (CBA), the biggest mortgage lender in the country, is the first major Australian bank to stop funding fossil fuel companies that don't have real plans to reduce emissions. In its latest climate report, released on the same day it announced nearly $10 billion in yearly profit, the bank said it had already been dropping clients who don't follow the Paris Agreement. Clients failing to meet an emissions pathway consistent with keeping global temperature increases to the “well below 2° Celsius goal of the Paris agreement” would not receive “new corporate or trade finance, or bond facilitation with a maturity beyond 31 December 2024”, CBA said.

Why it’s happening: CBA said last year that starting in 2025, it would stop giving loans to coal, oil, or gas companies without a plan to meet the Paris climate goals. This week's report shows the bank is starting this policy sooner than planned. The bank's loans to fossil fuel companies dropped by 92% between 2018 and 2022, going from $4 billion to $267 million. This information comes from Market Forces, a group that opposes investments in projects that harm the environment. The bank also reduced its investments in oil and gas companies by half over the past two years, going from $3.3 billion in 2022 to $1.7 billion. Court cases, policies, protests, and shareholder actions have been increasing pressure on banks in recent years. If a bank promises to follow the Paris Agreement but continues to invest in fossil fuels, it risks facing legal action. Climate change is also a big risk for banks. As more climate-related disasters happen, banks are affected because they have given loans for homes that might be damaged.

Why it’s important: CBA's new lending rules are a big success for the climate movement and groups like Market Forces, which have been focusing on the funders of fossil fuels for years. It’s expected Australia’s other big banks, Westpac, ANZ, and NAB, will come under even more pressure from shareholders and customers to follow the lead of CBA. According to the International Energy Agency's analysis, the world must not approve any new oil, coal and gas projects to avoid the worst effects of climate change.

US clean energy investment soaring this year

What’s happening: In the first half of 2024, the US invested $147 billion in clean energy technology, according to new data from the Clean Investment Monitor, a project by Rhodium Group and the MIT Center for Energy and Environmental Policy Research. This is over 30 percent more than what was invested in the first half of 2023. The report looks at real investments made by both public and private sources, not just announcements or plans.

Why it’s happening: Two years ago this week, President Joe Biden signed the Inflation Reduction Act, establishing many clean energy programs designed to boost spending on climate solutions. Investment in clean energy projects, like solar factories, home batteries, and hydrogen centres, has increased ever since and reached new highs in the first half of this year. Compared with the pre–Inflation Reduction Act era, the change is amazing. In 2021, before the climate law was passed, investors put $141 billion into clean energy technology. This amount is less than what was invested in just the first half of this year. In 2020, only $115 billion was invested.

Why it’s important: The biggest area of spending in the first half of this year was on clean energy by households and businesses. Together, they spent $64 billion to install heat pumps, put solar panels on their roofs, and replace their gas-powered cars with electric vehicles, among other actions encouraged by the climate law. Energy and industry, which includes things like new wind turbines and green hydrogen plants, received the second-highest amount of investment in the first half of the year, totalling $47 billion. The smallest but quickest-growing area was clean energy manufacturing. Investors spent $36 billion in the first half of 2024 to build new clean technology factories in the US, mainly in the Southeast and Rust Belt states. Most of the money is coming from private investors. For every $1 the government spends on clean energy, companies and businesses spend $5 to $6. This is because the Inflation Reduction Act offers many incentives to companies and consumers, making the deals hard to resist. As shown in this report, this strategy is working.

🌐 Travel to Vanuatu

Enjoy natural swimming holes

The stunning blue holes of Espiritu Santo: Discover the allure of Matevulu, Riri, and Nanda blue holes, with tips on getting there and the unique experiences each offers in our article.

😇 People doing great things

European Union tackles plastic waste

New ‘tethered’ caps on plastic bottles: From 3 July 2024, the EU directed that caps on all non-returnable plastic drink bottles of three litres or less must stay attached after opening. When bottle caps are not attached to the bottles, they can easily be dropped or lost. Wind or rain can carry them into drains or rivers, eventually reaching the sea. Bottle caps are one of the most common types of plastic waste on Europe's beaches. Even if they make it to a recycling bin, their small size causes problems. They often get filtered out at recycling plants because they are too tiny. If these lids stay connected to something larger, such as plastic bottles, they are less likely to become trash or end up in the ocean, where they can be dangerous to animals like turtles and birds.

⭐️ Weekly inspiration

98% of food waste is recycled in South Korea

Achieved over three decades: With various measures including paying small fees to compost food scraps and fines for mixing food waste with other garbage, almost all food waste is now recycled into animal feed, fertiliser, or energy.

Startups may have cracked the code for vegan cheese

Precision fermentation and AI: Next generation cheese makers include New Culture with their cow-less mozzarella debuting later this year at Michelin-starred Pizzeria Mozza in LA, while Climax Foods identifies plant ingredients to recreate the flavours and textures of blue cheese, feta, brie, and chèvre.

The first wind-powered electric ship-charging station

Debuts in Belgian North Sea: Electric maintenance vessels can now tether to an automatic cable at Belgian's Nobelwind wind farm at sea, which has been in operation since 2017 with 50 turbines over 19.8 square km (7.6 square miles).

Canadian grocery chain rolling out EV chargers

More than 130 stores: Metro will install the chargers in Quebec and Ontario, reducing their indirect emissions caused by customers, while contributing to the collective transition towards a more low-carbon economy.

Kids in France learn the power of pedalling

More than 500,000 kids: An ambitious national program in France is teaching kids how to ride bikes safely, helping them to become healthier, more independent, and reducing their carbon footprint.

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