Citi banking on a fossil gas shipwreck

SAN FRANCISCO (Chochenyo and Karkin Ohlone Lands) –– On the fifth anniversary of Citi’s co-founding of the Poseidon Principles for decarbonizing shipping, new analysis from Stand.earth reveals that Citi has facilitated nearly $741 billion USD for maritime LNG projects and companies in the last five years. The Poseidon Principles are a first-of-its-kind framework for financial institutions, purported to mobilize capital to decarbonize international maritime shipping.

Explore the full analysis here.

“Citi has touted itself as a bank at the helm of climate-responsible maritime finance. Instead, it’s been bunking up with fossil fuel interests and maritime laggards to the tune of billions of dollars for fossil gas vessels, infrastructure, and companies,” said Kendra Ulrich, Transportation Campaign Director for Stand.earth. “Citi must immediately end its support for fossil gas shipping, and put its considerable maritime finance experience in the service of ushering in a climate-safe future for our fragile blue planet.”

International shipping is one of the most polluting industrial sectors on the planet, with greenhouse gas emissions totaling more than that of Germany, the world’s sixth most emitting country.

LNG (liquefied fossil gas) is primarily methane, a greenhouse gas over 80 times more potent than carbon dioxide on a 20-year timeframe. Methane is 28 times more potent of a greenhouse gas on a 100-year timeframe, and the second leading cause of climate change. Studies have shown that the use of LNG as a marine fuel worsens the climate impact of shipping by 70 to 82% or more compared to business as usual.

While the Poseidon Principles do not explicitly address maritime LNG projects, the stated objective of the Principles is to align banks’ ship finance portfolios with climate targets.

Citi has also endorsed multiple other climate finance initiatives that should preclude its participation in financing for maritime LNG projects and companies, including the Climate Bond Initiative which explicitly excludes LNG ship finance.

“Amid a tsunami of nonviolent civil disobedience at Citi’s doors this summer over its fossil fuel funding, we’re rising up and refusing to wait any longer for Citi to live up to its empty climate promises,” said Hannah Saggau, Senior Climate Finance Campaigner with Stand.earth. “Citi is the largest funder of fossil fuel expansion, including LNG expansion, in the world since the Paris Agreement was signed. This analysis is further proof that Citi is a chronic greenwasher that prefers to accumulate endorsements rather than take real action to stop funneling capital to the fossil fuel industry.”

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The methodology for the findings in the report can be seen here.