Renewable financing surpasses fossil fuel lending for the first time !

For the first time, banks invested more in financing renewable energy projects compared to oil, gas, and coal ventures in the previous year. However, the decrease in capital raised by the fossil fuel sector may not indicate a significant move away from lending to oil and gas companies. It could be due to the improved financial stability of these firms, aided by high commodity prices and alternative funding options such as private equity and asset-backed securitizations. Four US banks—JP Morgan Chase, Citi, Wells Fargo, and Bank of America—represent one-fourth of the world's funding for the fossil fuel sector and are its top supporters. These banks invested more than US$1.2 trillion in the fossil fuel industry between 2016 and 2021. Norway experienced record oil and gas revenues in 2022, building on several prior prosperous years, and expanding its use of renewable energy. The Russian invasion of Ukraine and the ensuing lack of oil and gas in Europe caused energy prices to skyrocket last year, and Norway saw huge profits the entire year. As an alternative to Russia, the Nordic gas superpower immediately intervened to supply gas to other European nations that were suffering from acute shortages. Norway anticipates continuing to post record profits until 2023 as a result of its advantageous position in the global energy market. It also plans to expand its capacity for producing green energy to support the gradual switch from fossil fuels to renewables. Therefore, the real world is demanding more oil and gas, and the industry is supplying it, despite louder and louder cries for what would essentially shut down the oil and gas business. Drilling companies are erecting rigs to extract more oil and gas from the seabed all over the world, from the coasts of Brazil to the North Sea and the Persian Gulf. It is referred to as a Supercycle by analysts.