Environment

Barclays has financed $5.6bn in new fossil fuel projects since January

Barclays has financed more in fossil fuel projects than any of the UK’s largest banks in the months leading up to the Cop26 climate talks in Glasgow, according to a report by climate finance campaigners.

The bank financed $5.6bn (£4.1bn) for new fossil fuel projects from January 2021 to the eve of the UN climate summit, Market Forces found, despite growing international warnings that any new fossil developments would destroy any chance of avoiding a catastrophic climate breakdown.

Barclays’ multibillion pound support for fossil fuel projects was ranked ahead of that of HSBC, which financed $5.3bn this year, and Standard Chartered, which made $4.3bn available.

The report found Barclays financed a $194m bond to the Canada-headquartered pipeline company Enbridge, which part-owns the controversial Dakota access pipeline which is expected to carry enough crude oil to produce the emissions of 30 coal plants every year. It also said the bank provided $200m to MEG Energy, which extracts Canadian tar sands oil, one of the most polluting fuels on the planet.

The report also revealed how HSBC and Standard Chartered participated in a $6bn bond issuance to Saudi Aramco, the world’s most polluting company, and that HSBC financed a $1.5bn bond to Qatar Petroleum, which owns the world’s biggest gas field.

The three banks have extended financing to fossil fuel companies despite committing to net zero carbon emissions from financing activity by 2050 and issuing warnings that no new fossil fuel projects are compatible with keeping global heating in check.

The report’s findings came ahead of a series of Cop26 events scheduled for Wednesday that are intended to mobilise public and private finance to help tackle the climate emergency.

Mia Watanabe, a campaigner at Market Forces, said: “Despite their warm words, these banks continue to finance fossil fuel companies and projects that are destroying the world’s hopes of meeting climate targets.”

In a stunt to mark the latest report, Market Forces held a Formula One-style “prize giving” for the banks’ “race to disaster” outside Barclays’ Glasgow offices, which is a stone’s throw from the Cop26 venue.

A previous annual report by the group that tracked global fossil fuel financing found that in the five years after the signing of the Paris agreement, the three banks combined financed more than $257bn in the coal, oil and gas sectors.

That report found Barclays was the world’s seventh-biggest fossil fuel funder, and the biggest in Europe, while HSBC was ranked 13th in the world. Although Standard Chartered trailed at 34 globally, it is also the top UK financier of new coal plants in Asia, according to Market Forces.

The latest report follow news that Jes Staley has stepped down as the chief executive of Barclays after an investigation by City regulators into how he described his relationship with the billionaire sex offender Jeffrey Epstein.

Standard Chartered said last week that it would set “ambitious new targets” to reach net zero from financed activity by 2050, including interim 2030 targets for the most carbon-intensive sectors, that were aligned with the International Energy Agency’s scenario for a net zero energy system by 2050.

The global energy watchdog said in May that there could be no new oil, gas or coal development if the world was to reach net zero by 2050. Only days later a UN report warned that fossil fuel production planned by the world’s governments “vastly” exceeded the limit needed to keep the rise in global heating to 1.5C and avoid the worst impacts of the climate crisis.

“The science is clear – banks that keep funding fossil fuels can’t be climate leaders,” Watanabe added.

A spokesperson for Barclays was not immediately available to comment. A HSBC spokesperson said the bank was “firmly committed” to aligning its provision of finance to net zero by 2050 or sooner. “We have committed to phase out thermal coal financing by 2030 in EU and OECD markets and by 2040 globally and to set out short and medium-term transition targets for the oil and gas and power and utilities sector. We expect to provide between $750bn and $1trn towards the net zero-transition by 2030,” the spokesperson added.

Environment

NEMA issues flood alert to Benue, Kogi, Anambra, four other states

The National National Emergency Management Agency (NEMA) has warned of impending flood in Benue, Kogi, Anambra, Delta, Imo, Rivers and Bayelsa.

The agency advised other States in the central and southern parts to prepare ahead of potential floods that may soon affect communities downstream.

Some of the actions to be taken to mitigate the impact of the flood, according to NEMA, include immediate clearing of blocked drainages, constructing temporary flood barriers and evacuation from flood plains to safe higher grounds.

The agency in a statement on Thursday night by the Head of Press Unit of NEMA, Manzo Ezekiel said: “Following the recent flood that impacted many communities across some states and rising water levels in River Benue and River Niger, the National Emergency Management Agency (NEMA) advises states in the central and southern parts to prepare ahead of potential floods that may soon affect communities downstream.

“The advice has become imperative to activate the State, Local Government Authorities and communities to take necessary actions to mitigate against the risk of flooding and avoid the scale of losses recorded so far in areas that have been impacted, including loss of lives, displacement of communities, and significant damage to property and infrastructures.

“Specifically, the states that are highly probable to the hazard in next few weeks to come are Benue, Kogi, Anambra, Delta, Imo, Rivers and Bayelsa.”

On the expected actions to mitigate the impact, the agency stated: “Some of the actions to be taken include immediate clearing of blocked drainages, constructing temporary flood barriers and evacuating from flood plains to safe higher grounds”.

It also adviced communities to stay informed through weather updates and flood warnings from the Nigerian Meteorological Agency (NiMet) and the Hydrological Services Agency (NIHSA).

“Residents are advised to avoid crossing flooded areas, relocate from flood-prone zones, and cooperate with local emergency services.

“NEMA is working closely with state emergency management agencies and other relevant stakeholders through the National Emergency Operations Centre situated in the Agency’s headquarters to ensure that necessary support, including rescue and relief operations are available to affected communities.

“We urge all residents, especially in vulnerable areas, to heed our warnings and take immediate preventive measures to safeguard lives and property. Preparedness is key in reducing the impact of flooding.”

Business

Dangote Refinery to Power Nigeria’s Economy, End Fuel Scarcity, Save Forex – Gov. Abiodun …praises President Tinubu’s intervention

Governor Dapo Abiodun of Ogun State and Alhaji Aliko Dangote

Ogun State Governor, Prince Dapo Abiodun, said the commencement of fuel production by the Dangote refinery will strengthen the nation’s economy by eliminating constant shortages and conserving foreign exchange.

Petrol produced from the 650,000 barrels per day Dangote refinery is expected to hit filling stations in the next 48 hours as modalities with the Nigerian National Petroleum Company Limited have been formalized.

Prince Abiodun, in a statement on Tuesday signed by his Chief Press Secretary, Lekan Adeniran, said that with the refinery coming on stream, one of the most significant challenges faced by Nigeria for more than three decades—reliance on fuel importation—will be solved.

According to the statement, with the Warri and Port Harcourt refineries also being prepared to begin production, Nigerians will heave a sigh of relief from constant fuel shortages, while the economy will also receive a boost.

Prince Abiodun praised Alhaji Aliko Dangote for his determination in seeing through the multi-billion dollar projects against all odds.

The governor also commended President Bola Ahmed Tinubu for his intervention in ensuring that the refinery comes on stream during his administration.

He praised the President’s commitment to the revitalization of other refineries in the country, which, he said, will drastically reduce fuel prices when all of them start production.

He said: “This significant achievement marks a transformative milestone not only for you as an entrepreneur but also for Nigeria and the broader African continent. The establishment of this refinery represents a pivotal shift in the energy landscape of the region, showcasing the power of vision, resilience, and unwavering commitment to economic development.

“The Dangote refinery is poised to be a game-changer in the production of petrol, addressing one of the most pressing challenges faced by Nigeria: reliance on imported fuel. This dependency has not only strained our foreign exchange reserves but has also hindered our potential for self-sufficiency.

“By producing petrol locally, the refinery will drastically reduce the outflow of foreign currency, thereby strengthening our economy. This move aligns perfectly with the President Bola Tinubu-led administration’s efforts to achieve economic diversification and reduce reliance on oil exports alone.

“Moreover, the economic impact of the refinery extends beyond just fuel production. It is expected to generate thousands of jobs, both directly and indirectly, thus contributing to the reduction of unemployment rates. The ripple effect of this employment generation will invigorate local economies, stimulate growth in ancillary industries, and enhance the livelihoods of countless families across Nigeria.

“In addition to bolstering local employment and economic activity, the refinery’s operations are expected to enhance energy security in Nigeria. With the capacity to produce a substantial volume of petrol, the country will be better equipped to meet its energy needs, reducing the volatility associated with fuel shortages and price fluctuations.

“This stability will inevitably create a more favorable environment for businesses and attract foreign investments, further boosting economic growth.”

Environment

Speaker Abbas sympathises with Zaria flood victims

The Speaker of the House of Representatives, Tajudeen Abbas, has described the recent flooding incident in Sabon Gari Local Government Area of Kaduna State as tragic.

The heavy rainfall in the Kogin Mata and Tudun Muntsira, Chikaji areas of Sabon Gari, triggered the flood that occurred on Monday.

The Speaker’s media aide, Musa Krishi, in a statement on Tuesday, said Abbas sympathised with the flood victims and expressed sorrow that such a devastating incident struck at a time when people were striving to sustain their livelihoods.

According to him, “The deluge caused significant property damage and displaced numerous residents.”

Abbas called for urgent intervention to provide relief to those affected, urging the residents to remain calm as the government works to alleviate their suffering.

The Speaker then appealed to the National Emergency Management Agency and the State Emergency Management Agency to swiftly assist the flood victims.

He also advised residents of the affected and surrounding areas to take precautionary measures and follow guidance from relevant authorities regarding flood risks.

Abbas called for coordinated efforts to tackle the broader issue of flooding across the country.