According to The Irish Examiner, a groundbreaking report reveals a stark warning about global liquefied natural gas (LNG) investments potentially derailing critical climate targets.
Reclaim Finance has uncovered that $213 billion in planned LNG terminals could generate greenhouse gas emissions equivalent to all current coal power plants worldwide. These 156 planned terminal projects by 2030 represent a significant threat to the Paris Agreement’s climate objectives.
The International Energy Agency predicts a potential 50% growth in LNG capacity by 2030, far exceeding global gas demand projections. This massive infrastructure expansion could flood the market with cheap fossil fuels, potentially undermining renewable energy investments.
Justine Duclos-Gonda from Reclaim Finance emphasized the critical nature of these investments, stating that each LNG project endangers global climate commitments. The report highlights that most major banks lack specific policies to restrict LNG project financing, enabling continued massive fossil fuel infrastructure development.
The potential consequences are profound: an unprecedented gas supply glut could drive down fossil fuel prices, making renewable technologies less economically attractive and pushing climate goals further out of reach. With gas prices expected to plummet from $70 to $6.50 per million thermal units, the economic incentives for clean energy transition could be severely compromised.
This “climate bomb” represents a critical moment in the global fight against climate change, challenging financial institutions and governments to reconsider their energy investment strategies.