August 17, 2022

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NAB) NAB chairman Phil Chronican warns of dangers in financing new fuel tasks

“And the query it’s a must to ask your self is: how a lot new fuel improvement can we actually afford over the subsequent 5 to 10 years if we’re going to be at minimal ranges of fuel manufacturing by 2050?” As a result of lots of these tasks … that’s going to be an actual financial downside.”

The Chronican stated that whereas NAB’s board might help strikes to completely finish funding for brand new coal and oil developments, fuel is extra difficult due to its function as a transition gas.

“Fuel is a extremely gnarly topic and I’m not going to stroll away from it,” he stated. “However we have to concentrate on getting renewable vitality and constructing an influence, vitality market and grid that may help a renewable vitality framework. That must be our prime precedence as a result of we will’t simply hold constructing extra fuel and pumping out new fuel and hoping for a miracle that can take us to internet zero.”

NAB’s opponents are additionally cautious of funding new fuel tasks, however haven’t dominated it out. Westpac stated final week it wished to scale back “funded emissions” on fuel, whereas the Commonwealth Financial institution and ANZ Financial institution stated they’d solely fund “Paris-focused” tasks.

On the identical occasion, Dr. Man Debelle, former Deputy Governor of the Reserve Financial institution of Australia, stated Australia wants extra consistency in relation to reporting and evaluating local weather motion throughout the company panorama.

“I feel one of many challenges is discovering a constant method of it, quite than letting everybody decide and select,” Debelle stated.

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“I feel that was a bit missing … There’s nonetheless a protracted technique to go and hopefully we’ll be there within the subsequent yr or so by way of larger consistency in monetary reporting and valuation.”

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https://www.smh.com.au/enterprise/banking-and-finance/nab-chairman-phil-chronican-points-to-risks-of-financing-new-gas-projects-20220801-p5b6a5.html?ref=rss&utm_medium=rss&utm_source=rss_business NAB) NAB chairman Phil Chronican warns of dangers in financing new fuel tasks