The realm of ethical finance has made significant strides in 2024, channeling approximately 300 million euros into the energy transition. This funding has supported 326 projects across various sectors, including renewable energy, sustainable mobility, and energy communities.
The latest findings from the Barometer of Ethical Finance, a report published by the FETS (Financiamiento Ético y Solidario) since 2008, provide a comprehensive overview of the sector”s development in Spain. The report examines data from 32 financial institutions, including banks, credit cooperatives, and insurance companies that adhere to specific criteria, such as avoiding funding for projects that violate human or environmental rights, prioritizing loans to the real economy with positive impacts, and promoting transparency and participation.
The analysis was unveiled at the Energy Community La Bordeta in Barcelona, focusing on the ongoing energy transition. While major banks continue to finance fossil fuel expansion and retreat from their climate commitments, as highlighted by the “Banking on Climate Chaos” campaign, ethical finance remains steadfast in its dedication to clean energy while emphasizing social dimensions.
Jordi Rojas, president of FETS, remarked, “We are driving projects that perceive the energy transition not merely as a replacement of energy sources but as an opportunity to rethink the economic and social model.” This commitment is reflected in a diverse range of funded initiatives, including energy production and marketing, as well as projects aimed at decarbonization and transformative mobility solutions, such as citizen-led energy communities.
With an average funding amount nearing one million euros per project, this sector boasts the highest credit volume per initiative, according to the Barometer analysis. Núria Albet Torres, from the Energía Bonita energy community in La Palma, stated, “The loan enabled us to make a substantial initial investment, and once operational, demonstrating the viability of the proposal attracted more people and accelerated growth.”
The Barometer”s data indicates a continuity in key figures, reflecting a stable trend that underscores the consolidation of the ethical finance sector. The total savings deposited amounted to 2,411, slightly exceeding the previous year”s figure and representing a 60% increase over the past decade. The number of individuals associated with the various entities analyzed approached 193,000, marking an upward trend after several years of decline.
The loan volume extended to 1,921 projects surpassed 1.9 billion euros, indicating a 2.5-fold increase compared to figures from a decade ago. In terms of sectorial distribution, housing remains the most financed area, accounting for 25.8% of the total, closely followed by the social sector at 24.9%. Cultural initiatives occupy the third position with 17.5%, while the environmental and energy transition sector represents 16.2%. Education and agriculture also hold significant shares, at 7.4% and 5.5%, respectively.
Additionally, the Barometer features a section dedicated to ethical insurance, which adheres to ethical principles in both operations and investments, certified by the European EthSI seal. The volume of products managed by mutuals, brokerages, and registered companies exceeded 4.07 million policies, with premiums amounting to 1.394 billion euros, constituting 1.86% of the total volume of the Spanish insurance sector.
In the ethical insurance sector, alongside projects related to energy transition, solutions are being developed to address evolving needs. Ramon Roig from Balenya Sostenible noted, “The paradigm shift represented by energy communities was met with skepticism by many traditional insurance companies, which identified new risks and did not offer suitable products. In contrast, our ethical insurance brokerage engaged deeply to provide solutions tailored to our reality.”
