Att finansiera fossilbränsle : Banker, klimatrisk, och den ständigt utvecklande rollen av ESG och geopolitik
Year: 2025
Type: dissertation
Abstract: This thesis examines how syndicated loan terms differ between fossil fuel and non–fossil fuel firms in the context of ESG expectations and recent external shocks. Using loan-level data from the Refinitiv LPC DealScan database covering the period 2019–2025, the study analyzes differences in loan pricing (measured by all-in spread drawn) and credit volumes. The analysis is grounded in Risk-Based Pricing Theory, Political Risk Theory, and Institutional Theory, which inform the interpretation of how climate-related and geopolitical risks are reflected in lending practices. The results show that fossil fuel firms face significantly higher loan spreads compared to non–fossil fuel borrowers, consistent with the presence of a climate risk premium. However, these borrowers also receive larger loan amounts, indicating that higher pricing does not coincide with a reduction in credit provision. Certain external shocks—particularly the Russia–Ukraine war—are associated with elevated spreads for fossil fuel firms, but not with lower loan volumes. ESG scores of both borrowers and lenders show limited influence on credit allocation. These findings suggest that banks adjust loan pricing to account for climate and geopolitical risks, but that capital flows to fossil fuel firms remain largely unchanged. This points to a pattern of risk-based pricing rather than a broader reallocation of credit.
Source: DiVA (Linnaeus University)
Authors: Norberg, Olle, Pozas Johansson, Hugo
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7064150218