While communities burn and flood, major banks continue financing coal and gas expansion, writesKyle Robertson.

AUSTRALIANS ARE EXPERIENCING another scorching summer of deadly and terrifying bushfires, heatwaves and floods.

The world just endured the three hottest years on record, according to theWorld Meteorological Society, and the impacts of the climate crisis are worsening. But some of Australias biggest banks and super funds are failing us all by pouring money into new coal, oil and gas, fuelling catastrophic climate disasters.

Climate change is wreaking havoc, driving up the cost of living for Australians in all walks of life, from the cities to the most remote bush communities. Insurance premiums are surging due to the growing frequency and intensity of unnatural disasters. A growing number of homes and properties are becoming uninsurable, with more than one in seven (15 per cent) households experiencing insurance affordability stress in 2024.

Climate-related disasters are already costing Australians $4 billion a year and are expected to rise to a whopping $35 billion by 2050, according to theClimate Change Authority. The bedrock of our economy and way of life Australias housing market is expected to lose a staggering $500 billion in value by 2030. Almost 7 million Australians on the fringes of our capital cities are increasingly at risk of urban fires like the catastrophic blazes we saw in Los Angeles last year, according to anew Climate Council report.

New data shows ANZ and Westpac accelerating fossil fuel lending despite public climate pledges, placing them at odds with both regulators and their own commitments.

In our regions, farmers are doing it tough due to bushfires, floods and extreme drought. Many are unable toinsure their farmsbecause of the massive hikes in premiums in recent years, with some copping insurance bills north of$100,000.

Yet as climate catastrophes batter communities in all corners of the country, some of our largest financial institutions are propping up the very activities fuelling these disasters, all while passing the costs onto Australians enduring a cost-of-living crisis.

Big banks and superannuation funds have continued this appalling behaviour despite their public commitments to honour the climate goals of theParis Agreement, which requires cutting support for new fossil fuels and accelerating cleaner and cheaper renewable energy.

When the world signed the Paris Agreement over a decade ago, it was agreed that limiting the worst effects of global warming required deep cuts to greenhouse gas emissions. Scientists and expert bodies, including theInternational Energy Agencyand theIntergovernmental Panel on Climate Change, confirmed that the single largest source of emissions fossil fuel production would need to be reduced rapidly.

Instead, its gone the other way. According to projections from theGlobal Carbon Budget,global fossil fuel emissions are forecast to set another all-time record in 2025, enabled by big banks and investors, including our super funds.

According to theInternational Energy Agency, fossil fuel companies have poured over $17 trillion globally into coal, oil and gas in the last decade. In 2024, the worlds annual average temperaturesurpasseda 1.5C increase above the pre-industrial period for the first time ever.

Lets make no mistake, we are looking down the barrel of catastrophic warming levels of just below3Cthis century unless we speed up the transition from fossil fuels to clean energy. At least800 million peopleface being displaced due to rising sea levels and flooding. Longer deadly heatwaves areforecastto affect everyone on Earth by 2050.

Despite pledging support for climate action, it's possible one of Australia's big four banks is coming to the financial rescue of pollution giant AGL.

Its beyond belief that major Australian banks, particularlyANZandWestpac, continue tofundthe fossil fuel expansion plans of some of the worlds biggest polluters likeWoodside,SantosandBP.

Macquarie Groupisbackingone of Australias biggest new gas fracking projects, the Northern TerritorysBeetaloo Basin, threateningclean water suppliesfor farmers and unleashing emissions equivalent to running Australias biggest coal power station,Eraring, into the next century.

These banks parrot the gas industry claims that more of their fossil fuel is needed for the transition to clean energy. But there is no need for the development of new gas supplies to meet export or domestic demand, according to theInstitute for Energy Economics and Financial Analysis. Put simply, we have enough gas already in production.

Our major banks control over80 per centof Australias mortgage market. Providing financial support to companies expanding fossil fuels is completely at odds with their moral and economic imperative to protect Australians and their homes from disasters.

Australias largest super funds are also failing to protect us from the ravages of climate change now and into the future. The top 30 funds have$33 billioninvested in the 200 companies with the biggest fossil fuel expansion plans in the world, more than three times their investments in major clean energy companies. Our biggest super funds are major owners of three of Australias largest polluters Santos, Woodside andWhitehaven Coal.

Super funds have a duty to act in the best financial interests of their members, but theyre fuelling catastrophic fires and other disasters, and risking a safe and prosperous retirement by failing to rein in Australias major climate polluters.

Its time our financial institutions heed the emergency alarms and stop funding and enabling fossil fuel expansion. Especially as the mounting social, environmental and financial costs are passed on to everyday Australians.

Kyle Robertsonis the head of research atMarket Forces.

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