Ahead of the third United Nations Ocean Conference, a new report from civil society revealed the devastating role that French banks, alongside other Global North financial institutions, are playing in fueling fossil gas expansion in a highly biodiverse marine region in Southeast Asia and the Pacific. The analysis revealed that a total amount of USD 71.743 billion was poured into the gas industry in the Coral Triangle from 2016 to 2024.
The Coral Triangle spans over 10 million square kilometers across eight countries, including Indonesia, Malaysia, Papua New Guinea, the Philippines, Timor-Leste, the Solomon Islands, as well as Brunei and Singapore. It is a global epicenter of marine biodiversity, boasting 76% of the world’s coral species and 37% of reef fish species, supporting the livelihoods and sustenance of over 120 million people.
Key findings of the report ‘Trouble in Coral Paradise’ from sustainability think-tank Center for Energy, Ecology, and Development (CEED) include:
- A total of USD 71.743 billion in loans and underwriting went to the gas industry in the Coral Triangle between 2016 and 2024. Financial institutions from Global North countries, including Japan, the United States, and Europe, are among the biggest financiers.
- Notably, French banks alone funneled USD 4.929 billion into the gas industry in the Coral Triangle during this period, making them the seventh-biggest financier overall and the second-largest among European countries.
- The five French banks identified in the report are BNP Paribas, Crédit Agricole, Société Générale, Groupe BPCE, and Crédit Mutuel. These banks have provided financing across the entire gas value chain, from field development and exploration to building terminals, liquefaction facilities, and power plants.
- None of the banks has a specific restriction on gas projects located in areas not legally declared as heritage or protected sites–effectively risking the majority of the Coral Triangle, as only 2.5% of the Triangle’s marine area is currently protected.
The report outlines urgent recommendations for French and Global Northern financial institutions to bridge the massive inconsistency between their sustainability commitments and where their money goes, including:
- States should recognize the role of fossil fuels in endangering and threatening oceans and marine ecosystems, and respond by declaring key biodiversity areas as no-go zones for fossil fuels. Financial institutions should exclude financing for oil and gas projects in key biodiversity areas.
- French financial institutions should commit to no longer fund or support fossil fuel projects, and should ensure that they do not finance these projects through loopholes in their own policies, such as through underwriting or selling securities intended for fossil gas projects and related facilities, and for general corporate purposes of coal or fossil gas developers.
- Financial institutions must redirect investments towards scaling up public finance for renewable energy projects, particularly decentralized energy systems that will not reproduce the harms of a fossil-fueled energy system, and ensure a just and fair energy transition.
“This report is a stark reminder that true ocean conservation cannot be achieved without confronting the financial enablers of fossil fuel expansion,” said Gerry Arances, Executive Director of CEED and Convenor of the Energy Shift Southeast Asia.