Over 100 frontline and climate groups have written to the biggest banks, insurance companies and private equity backing liquefied methane gas (LNG) in the United States, demanding they follow the dramatic change in US policy on the sector and to end their financial support.
The organisations, including the Toxic Bonds Network, Texas Campaign for the Environment, Sierra Club, Rainforest Action Network, Friends of the Earth, and Stand.earth cite financial risk and reputational damage through continued funding of LNG in letters to US, Japanese, Canadian and European banks, insurance companies and private equity. The banks include Citi, Bank of America, Royal Bank of Canada and Mizuho. Groups also wrote to insurance companies Chubb, Liberty Mutual, and private equity firm KKR.
The groups are demanding an end to bank loans and bond underwriting “for new and expanding liquified methane gas projects and their parent companies, including all projects that have not been built or reached a final investment decision”.
Without the backing of financial institutions, LNG expansion would be unviable. The top 60 banks have provided $122 billion in loans and bond underwriting to LNG projects and companies involved in the sector since 2016.
The letters warn the future of LNG is in “serious doubt and the potential of new facilities quickly becoming stranded assets is real”. Companies should follow President Biden’s urging to listen to frontline communities and young people fighting the LNG build out, the letter adds. The groups have given the banks, insurance companies and private equity until February 15 to reply.