- In an open letter, 32 organisations from the US’s Gulf Coast, Europe, Japan and elsewhere condemn European and Japanese banks for their financing of liquefied natural gas, or methane gas, in the Gulf South of the United States
- The organisations demand that the banks publicly rule out direct financing of US LNG, provide remedies and compensation for harm done and implement exclusion policies for all LNG expansion projects and companies
- The letter is published in the context of protests in New York against the financing and insurance of the LNG industry in the United States.
June 28, 2024 – In an open letter, 32 organizations condemn European and Japanese banks for financing LNG export terminals and companies along the Gulf South coast in the United States. The letter is addressed to Deutsche Bank, Dutch bank ING, Spanish Banco Santander, Crédit Agricole, BNP Paribas, Natixis and Société Générale from France, Intesa Sanpaolo from Italy and Japanese banks MUFG, SMBC and Mizuho because they have provided billions of US dollars to the expansion of LNG in general – and LNG terminals in the Gulf South specifically – in recent years.
In the letter, the signatory organizations warn of the serious impacts of the export terminals on local communities’ health, the environment and nature in Texas and Louisiana and the climate. The impacts of LNG infrastructure disproportionately affect low-income, immigrant and Indigenous Communities, and communities of colour who make up the majority of the population in the area. Several projects pass through sacred sites of Indigenous Tribes in the region. The developers of LNG projects in the Rio Grande Valley of Texas have not secured Free, Prior, and Informed Consent (FPIC) from the Carrizo/Comecrudo Tribe, which violates Indigenous Peoples’ rights. Planning the LNG buildout in these areas further exacerbates ‘sacrifice zones’ and environmental racism.
The letter is published on the same day that nearly 200 community organisers and frontline leaders from the Gulf South are leading a massive march to and action at Citibank’s headquarters in New York. The action is part of a week focused on solidarity with Gulf South organisers and communities in the “Summer of Heat” protests in New York, which target banks, investors and insurers supporting the fossil fuel industry. Earlier this week, community organisers and frontline leaders targeted Bank of America, Blackrock, MUFG and Mizuho and insurers Chubb and AIG, among others. On Thursday 27th June, the group also visited branches of Deutsche Bank, ING, Crédit Agricole and Banco Santander.
The signatory organizations call on the banks to:
- Publicly rule out direct financing for all new LNG infrastructure projects, meaning projects that have not yet reached financial close, in the Gulf South Coast;
- Provide remedies and compensation for the existing impacts, in a form to be determined by local communities, caused by LNG terminals financed by that bank;
- Introduce a policy that immediately excludes direct financing for all new “midstream” projects everywhere, including LNG terminals, pipelines, and the expansion of existing LNG terminals;
- Introduce a policy that excludes financing, which includes lending, underwriting for share and bond issuances, and other financial services, for companies that are still expanding the LNG sector, meaning companies that are building or plan to build new LNG terminals and facilities.
“Living in a community surrounded by industrial pollution our children are getting sick, our air and our water are poisoned, and our local fishermen are losing their livelihoods. By ceasing to fund environmental racism, banks have the power to dismantle systemic inequality and ensure a future where every community can thrive in a clean and just environment,” said Roishetta Ozane, founder of Vessel Project of Louisiana.
“All the voluntary risk management and stakeholder engagement frameworks European and Japanese banks have signed on to clearly fail to prevent them from financing projects that breach human and Indigenous Peoples’ rights. The Summer of Heat actions in New York this week and the open letter show that opposition from the Gulf South and international allies is strong and escalating. The reputational and legal risks of continuing to finance LNG projects in the Gulf South are therefore significant and will only increase. It is clear that the only right, meaningful and wise choice to make to prove that the banks are serious about human rights and to minimise their risks is to implement exclusion policies for all oil and gas midstream projects and companies,” said Henrieke Butijn, Climate campaigner and researcher, BankTrack.
“The banks committed to act on climate but they are still financing climate wrecking LNG projects. LNG is not a “bridge fuel”. It will bring further damage to the climate and communities. Japanese financiers and investors are actively supporting the new and expansion projects especially in the Gulf region, such as Freeport LNG, Cameron LNG and Rio Grande LNG. We do not need any more empty words but action. Banks should introduce a strict policy to exclude support for fossil gas projects,” said Ayumi Fukakusa, deputy executive director of FoE Japan.
“Japan’s megabanks are the world’s top LNG financiers and they must uphold their commitments to global climate goals. MUFG executives have told shareholders they won’t finance projects without confirming environmental and social safeguards, including impacts on First Nations human rights, and financial risks. It’s totally unacceptable for the banks to support LNG, which is causing irreversible harm to communities and the climate. LNG’s lifecycle emissions are worsening climate chaos. Instead of locking-in dirty energy globally and harming US Gulf Coast communities, these banks must demonstrate true climate leadership by investing in clean energy,” said Eri Watanabe, Japan Energy Finance Campaigner, Market Forces.