Chinese banks are the second largest investors in commodities and the first aggregate group by nationality blamed for deforestation, according to analysis by green NGO union Forests & Finance.
From January 2016 to April 2020, Chinese institutions provided €12.5 billion in loans and other financial vehicles to companies exploring commodities in Asia, Brazil and Africa.
According to NGO research, the Industrial and Commercial Bank of China (ICBC) was the largest financier of deforestation, providing about €1.8 billion to companies that have caused damage to nature through their activities.
Among these companies is Sinochem, a Chinese state-owned chemicals group. According to NGOs, it was the most favored by loans and other financing vehicles from various banks, raising a total of 3.8 billion euros, much of this amount being invested in the rubber business.
The trade in raw materials accounts for two-fifths of the causes of global deforestation and contributes to about 5% of annual greenhouse gas emissions.
The NGOs thus criticize the hypocrisy of Chinese President Xi Jinping, who promised last year that China would achieve “carbon neutrality” by 2060, while on the other hand fueling the path of rainforest death.
“The world’s major economies talk a lot about climate action, but continue to turn a blind eye to the activities of their own banks,” commented Tom Picken, senior official at the Forests & Finance union.
