Barclays Bank, the largest lender to the oil and gas sector in Britain, told Reuters that it will stop direct financing for businesses linked to new oil and gas fields, and will impose limits on lending to a wider circle of energy companies, including those that contribute to the expansion of fossil fuel production.
The move is part of a framework published on Friday that deals with financing projects related to the energy transition, and comes in the wake of intense pressure from climate groups on its policy towards the energy sector amid a rise in climate-harming emissions from burning fossil fuels.
In addition, starting in 2025, the bank will limit the increase in financing to non-diversified companies, such as companies that work exclusively in exploration, if more than ten percent of their spending is directed towards expanding production in the long term.
Laura Barlow, Head of Sustainability at Barclays Group, said that the new policy comes within the framework of the group’s commitment to reduce emissions related to bank lending and increase financing for more environmentally friendly alternatives.
“It is about strengthening our focus on the energy transition,” she added.
She said that existing clients from the exploration and production sector who exceed the ten percent limit will be subject to an enhanced supervision process that also considers the client’s investment in efforts to reduce carbon emissions.
Barclays joins banks such as HSBC and BNP Paribas in restricting lending in the oil and gas sector while pledging to increase financing for areas such as renewable energy that can help reduce global warming, which It aims for the volume of this type of lending to reach one trillion dollars by 2030.
2024-02-09 10:35:09
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