Notes

NOTES

1. The universe analyzed in the report includes 2,300 companies that received funding from the 60 largest banks across the following sectors globally: extraction, transportation, transmission, combustion or storage of any fossil fuels, and fossil fuel–based electricity generation, including coal mining and coal power generation. 2. The 100 expansion companies examined include 60 oil and gas companies, 15 companies behind key pipeline and liquefied natural gas terminals that would enable higher upstream production, and 11 coal mining companies and 15 coal power companies (Rainforest Action

Network 2021, 31). 3. The US$77 billion excludes the launch of two infrastructure megafunds (US-based Global

InfrastructurePartnersIVwithUS$22billionraisedandSweden-basedEQTInfrastructure

IV with US$9 billion raised). 4. World Bank estimate based on figure 2.6 of Preqin (2020a). 5. This amount includes the two previously mentioned infrastructure megafunds, which have an energy focus. 6. Alternative funds are a broader category that includes, as a subset, private capital funds.

Hedge funds also belong to the alternative universe. 7. Capterio website (https://capterio.com/our-solution). 8. See the company’s website for details on its recent investment (https://newenergy.slb.com /new-energy-sectors). 9. See the company’s website for details on its business focus (https://www.bakerhughes .com/energy-transition). 10. Definition from Organisation for Economic Co-operation and Development website (https://www.oecd.org/development/development-finance-institutions-private -sector-development.htm), accessed on May 18, 2021. 11. See Anticipated Impact Measuring and Monitoring framework for a list of criteria considered (https://www.ifc.org/wps/wcm/connect/98183cc6-fbf0-4cad-93cf18c8ae2c7f66/AIMM-Oil-and-Gas-Consultation.pdf?MOD=AJPERES&CVID=nmTfdsD). 12. The Climate Finance Tracking Working Group comprises the African Development Bank,

AsianDevelopmentBank,EBRD,EuropeanInvestmentBank,Inter-AmericanDevelopment

Bank Group (IDBG), and Islamic Development Bank; and the IFC, World Bank (International Development Association and International Bank for Reconstruction and

Development), and Multilateral Investment Guarantee Agency of the World Bank Group. 13. Based on information retrieved from the Nigeria Sovereign Investment Authority’s website (https://nsia.com.ng/), last accessed on June 3, 2021. 14. In May 2020 the People’s Bank of China announced a proposal to exclude the clean use of fossil fuels from the list of projects that may benefit from green finance (Yamaguchi and

Ahmad 2020). 15. European Commission website (https://ec.europa.eu/info/business-economy-euro /banking-and-finance/sustainable-finance/eu-green-bond-standard_en). 16. Art. 41 of the EU Taxonomy Regulation excludes from the activities “contributing substantially to climate change mitigation” those that would “hamper the development and deployment of low-carbon alternatives” and “lead to a lock-in of assets incompatible with the objective of climate-neutrality, considering the economic lifetime of those assets.”

Detailed technical screening criteria for the application of regulation may further clarify the regulation’s approach toward fossil fuel investments, including FMR. The publication of such criteria, originally expected by December 2020, has been delayed because of the large number of comments received during the consultation period. The European

Commission recognizes “the need to give reassurance that the taxonomy will not block access to finance for enterprises and sectors in transition towards our climate targets.” To this end, the Platform on Sustainable Finance, which has replaced the Technical Expert

Group, has been tasked to advise it on how the taxonomy could be used to finance transition activities. Details on the platform’s role and timeline for deliverables can be found on the European Commission web page (https://ec.europa.eu/info/business-economy-euro /banking-and-finance/sustainable-finance/overview-sustainable-finance/platform -sustainable-finance_en#what). 17. For more information, see CBI website (https://www.climatebonds.net/certification /eligible-instruments).