Baku, 14 November 2024 – On Finance Day at COP29 - also called the "Finance COP” -, the Global Alliance for Banking on Values (GABV) announced that 25 of its member banks have endorsed the Fossil Fuel Non-Proliferation Treaty initiative, marking the first collective endorsement of the initiative by financial institutions. The Treaty is a proposal for a global binding plan to end the expansion of new coal, oil and gas projects, and manage a global transition away from fossil fuels.

Founded in 2009, the GABV is a network of 70 sustainable banks operating across all major world regions, united by a mission to "finance change and change finance." By endorsing the proposal for a Fossil Fuel Non-Proliferation Treaty, these 25 GABV members are urging the financial sector to take meaningful action in the fight against climate change by ending finance for fossil fuel expansion. They collectively manage $117 billion USD in assets and serve over 11,3 million people worldwide.

The GABV’s member banks represent some of the most ambitious examples of sustainable finance. For instance, Triodos Bank, the first bank in the world to sign up to the Treaty initiative, has been the leading lender for clean energy projects for eight consecutive years. GABV members are setting ambitious targets to achieve net-zero emissions as early as 2035, demonstrating that sustainable finance is not only possible but essential. 

Martin Rohner, Executive Director, GABV: “Despite frequent and often high-profile commitments, many mainstream banks continue to finance the fossil fuel industry, fuelling further unpredictable climate impacts. If the financial sector is serious about its sustainable commitments, it should support initiatives like the treaty that are creating real solutions to the crisis. A treaty will help create a resilient business climate, built on a long-term perspective and a level playing field, which is in the interest of businesses and financial institutions wherever they are in the world.”

Tzeporah Berman, Chair and Founder of the Fossil Fuel Non-Proliferation Treaty Initiative: "The support from a growing number of banks for the Fossil Fuel Treaty reflects true leadership in the financial sector and a recognition that phasing out fossil fuels is not only desirable but achievable. These visionary banks are boldly stepping up as leaders in the fight against the climate crisis, recognizing their vital role in driving a just and equitable transition away from fossil fuels. We encourage other banks to join them. We know that the growing threat posed by floods and fires and violent storms is caused by oil, gas and coal and we need financial institutions, both public and private, to engage and support a transition to clean, safer energy systems and to help protect what we love. For too long we have been hearing banks claim to be climate leaders while continuing to finance expansion of the problem. The GABV support sets a bar for other financial institutions and sends a clear message of support to those governments who have endorsed the Fossil Fuel Treaty and are beginning to design this critical complement to the Paris Agreement.”

The role of the banking sector

The Paris Climate Agreement recognised the financial sector as an enabler of the most ambitious climate-related goals. Since then, every COP has explicitly referenced the financial system’s role in supporting the just transition. Moreover, this COP29 has been dubbed the “Finance COP,” marking the critical moment for wealthy countries to fund the fight against climate devastation.

“By joining the call to end fossil fuel financing, the financial sector can amplify the demand for a legally binding international Treaty,” says GABV Executive Director, Martin Rohner. “And by working directly with contacts in government, especially in the Global South, we hope to encourage support for the Treaty from the countries most vulnerable to runaway climate change.”

This call also applies to the private financial sector. According to the 2024 Banking on Climate Chaos report, the world’s 60 biggest banks committed USD 6,9 trillion over 8 years to the fossil fuel industry, driving climate chaos and causing deadly local community impacts. A report by Topo Finance found that if the largest banks and asset managers in the U.S. were a country, they would be the third-largest emitting country in the world, behind China and the U.S.  

The International Energy Agency (IEA) estimates that the world needs to invest about $4 trillion annually by 2030 for clean energy alone. Banks will play a key role in financing the shift toward sustainable business models and practices. While the number of banks with net-zero commitments by 2050 has grown, a closer look reveals that they are not on track to achieve their goals.

Banks to endorse the Fossil Fuel Treaty initiative are:

1. Amalgamated Bank (USA)

2. Alternative Bank Schweiz (Switzerland)

3. Banca Etica (Italy, Spain)

4. BancoSol (Bolivia)

5. Banco Popular (Honduras)

6. Bank of Karditsa (Greece)

7. Beneficial State Bank (USA)

8. Centenary Bank (Uganda)

9. Charity Bank (UK)

10. Clearwater Credit Union (USA)

11. Climate First Bank (USA)

12. Cultura Bank (Norway)

13. Ekobanken (Sweden)

14. Freie Gemeinschaftsbank (Switzerland)

15. Finca DRC (Democratic Republic of Congo)

16. Merkur Cooperative Bank (Denmark)

17. NMB Bank (Nepal)

18. Summit Credit Union (USA)

19. Sunrise Banks (USA)

20. 3Bank (Serbia)

21. Triodos Bank (Netherlands, Belgium, UK, Spain, Germany)

22. Umwelbank (Germany)

23. Unity Trust Bank (UK)

24. Vancity (Canada)

25. vdk bank (Belgium)The speech had an impact in civil society, especially the faith community.