Australia’s largest commercial bank, Commonwealth Bank of Australia (CBA), clarified that it is not opposed to the gas industry amidst concerns about the impact of its climate change policy on gas supply. CEO Matt Comyn emphasized the bank’s support for the gas industry while also maintaining its net-zero commitments. The bank announced a shift in its lending policy for energy companies, stating that it will no longer finance new or expanded oil and gas extraction projects. Instead, it will only provide loans to companies committed to transitioning away from fossil fuels in alignment with the goals of the Paris Agreement on climate change.
Comyn’s comments came in response to concerns raised during a parliamentary inquiry about the potential effects of the bank’s policy on gas investments in Australia. He assured that the bank recognizes the importance of gas in the country’s energy mix and is actively engaged with stakeholders like the Australian Energy Market Operator to address potential gas shortages. Despite the rise in gas prices and concerns about energy security, Comyn highlighted the bank’s commitment to balancing its support for the gas industry with its net-zero goals.
The bank’s stance on gas investments coincides with a recent report by the Australian Competition and Consumer Commission (ACCC), which warned of potential gas shortages by 2027 if new supply sources are not secured. The ACCC highlighted the need for urgent action to develop new gas projects to meet future demand and ensure energy security in the country.
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