Banks Fueling Green Claims Back Fire, Says Study

A recent study examined 20 of the world’s largest lenders and found that only Lloyds avoids financing environmentally harmful steel production. The majority of banks are backing projects that employ so‑called “false solutions,” such as:

• Using natural gas to cut down iron ore
• Adding hydrogen to blast furnaces

These tactics may keep outdated, dirty practices alive and even contribute to forest loss. The researchers argue that such financing merely moves the same pollution around rather than eliminating it.

When a bank invests in a plant that still burns coal or emits methane, the climate gains nothing. This raises a critical question: Are banks truly doing their part to protect the planet?

If banks continue funding projects that only appear green, public perception will falsely believe progress is being made while the reality remains stagnant. The report calls for a shift in strategy: banks should halt support for these pseudo‑green initiatives and redirect capital toward genuinely clean technologies—such as electric steel mills or carbon capture systems.

Only by investing in true low‑carbon solutions can the promise of sustainable steel become more than a marketing slogan.