For this episode, we had the chance to discuss with Paul Schreiber from Reclaim Finance. We addressed the role of financial institutions in stopping the expansion of fossil fuels.
Why is it necessary to stop the expansion of fossil fuels?
Solving the climate crisis will require us to reduce the amount of greenhouse gas emissions released into the atmosphere. Fossil fuels contribute to a large amount of greenhouse gas emissions. Hence, we must aim for an exit from fossil fuels.
What is the role of financial institutions in exiting fossil fuels?
Financial institutions should stop financing projects and companies involved in the expansion of fossil fuels. Indeed, in order to continue developing such projects, companies need financing. If financial institutions refuse to finance them, it could significantly reduce the amount of fossil fuel projects.
Why are financial institutions still investing in these types of projects?
The main reason why financial institutions continue to invest in fossil fuels is that fossil fuels are a reliable cash flow. Financial institutions fear the transition to quitting fossil fuels. This means that they tend to continue investing in these types of projects.
Blackrock is a great example of greenwashing. Their advertisements on green energy do not match their financial decisions.
