Are You Inadvertently Financing Climate Destruction? Here’s How To Align Your Money With Your Values

There’s no denying that things are heavy at the moment. We’re still living through a pandemic, conflict is erupting across the globe, and even closer to home, the end of summer has been marked by devastating floods across Queensland and New South Wales. 

Let’s not forget as well that just two years ago, Australia was suffering through the 2019/2020 bushfires. No matter which way you look, the effects of climate change seem to be getting more severe with each passing year. 

One of the major culprits? Fossil fuels. 

A form of hydro-carbon containing materials that are mined from the earth, fossil fuels include coal, petroleum, natural gas, heavy oils and more. And, as we all learnt in primary school, these are the fuels that help us power our cars, homes, factories, and transportation. 

Despite all of the scientific evidence that the burning of fossil fuels is releasing large amounts of carbon dioxide into the air — and therefore heating up the globe more quickly — the fossil fuel industry is still big business. 

According to the International Monetary Fund, the fossil fuel industry benefits globally from subsidies of $11 million USD (that's around $14 million AUD) every single minute. 

“Our government is bankrolling the fossil fuel industry through billions each year in taxpayer-funded subsidies,” says Ariella Gamble, the director and co-founder of Groundswell Giving. Groundswell Giving’s — a philanthropic fundraising community that raises money for climate advocacy — mission is to accelerate climate action in Australia during this crucial decade. 

“Right now, the fossil fuel industry in Australia receives approximately $10.3 billion per year from ordinary Australians. That’s around $1,000 per person, per year out of our pockets to coal and gas giants.” 

While you may not be directly handing your hard-earned cash into the greasy hands of gas and oil corporations, there are some ways that our investments and choices are contributing to the problem. 

According to Jess Panegyres, the head of ​​Clean Energy Transition at Greenpeace AP, fossil fuel corporations are receiving funding from taxpayers via government subsidies, as well as from many banks, superannuation funds, investors, insurance companies, private equity firms, and other financial institutions.

Panegyres tells Refinery29 Australia, “These banks are ignoring the stark 1.5 degree imperative for private profit, and unfortunately governments and financial regulators are letting them." 

“The International Energy Agency has said there should be no new coal, oil and gas fields. But big banks are continuing to fund oil and gas expansion with billions of dollars.” 

According to Gamble, financial institutions such as your superannuation or bank, invest in fossil fuels as they have historically yielded a stable return on investment due to these resources being so high in demand. 

The bad news is that many of the big banks appear to not be listening to the urgent need to move away from fossil fuel dependency. The good news? 

We can protest with our wallets. 

“Collective action is essential to demanding climate action from governments and businesses. At the individual level, we can choose to divest our money from the banks, super funds, and corporate giants who are financing fossil fuel projects and put it into clean funds that support clean investment instead,” says Panegyres. 

Similar to the greenwashing of the fashion industry, the fossil fuel reliance on certain financial institutions is also hard to discern. Resources like Market Forces are a quick and easy way to see if your bank and superannuation fund is profiting off the destruction of the climate. 

Once you’ve done your research, switching to a financial institution that’s committed to green and sustainable investments, such as Bank Australia, can ensure that your money isn't being used to fund industries that cause harm.

“Choosing to bank ethically sends a powerful message that there is no future in funding climate collapse, and accelerates the decarbonisation of our economy through market forces,” says Gamble.

While it can be easy to feel defeated and like a small human facing up against giant corporations and biblical floods, in our capitalist society, consumers actually can create change through buying power. 

“We have the power to signal directly to banks that we expect them to be part of the climate solution, to put our money to good use instead of bad. And if enough of us do this together, we can force change.”