BNP Paribas ceases business with companies primarily focused on oil or gas extraction from shale, tar sands, to accelerate support for a clean energy transition
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Author: Andrew Ward & David Keohane, Financial Times
BNP Paribas is to stop doing business with companies whose primary activity involves oil and gas extracted from shale deposits or tar sands in one of the most aggressive steps so far by an international bank to reduce exposure to fossil fuels. The French lender said it would no longer finance new shale or tar sands projects nor work with companies mainly focused on those resources. It also ruled out involvement in oil and gas exploration and production in the Arctic... The move expands an earlier commitment by the bank to stop financing coal mining and coal-fired power projects and highlights the growing risks facing the oil and gas industry from global efforts to tackle climate change.
Author: Fabio Benedetti Valentini & Russell Ward, Bloomberg
BNP Paribas SA pledged to stop financing shale and oil sands projects, expanding earlier commitments in support of global efforts to tackle climate change... The company also won’t fund oil or gas projects in the Arctic region... BNP Paribas said it’s committed to bringing its financing and investment activities in line with international efforts to keep global warming below 2 degrees Celsius by the end of the century. Achieving that goal relies on reducing the world’s dependence on fossil fuels, starting with energy from shale and oil sands, the bank said... Once a global leader in oil financing, BNP has withdrawn from funding coal mines and coal-fired power plants in recent years, along with other big European banks including Societe Generale SA, HSBC Holdings Plc and Credit Agricole SA.
“In concrete terms, these decisions mean that we will cease providing finance to a number of companies and organizations that are not making an effort to be part of the transition to a less greenhouse gas-emitting economy,” [Chief Executive Officer Jean-Laurent] Bonnafe elaborated in an article posted on his LinkedIn account. “Going forward, we will agree to finance only those energy sector companies that are pursuing a policy of diversifying their energy sources.”
Press release: BNP Paribas takes further measures to accelerate its support of the energy transition
Author: BNP Paribas
BNP Paribas Group will no longer do business with companies whose principal business activity is the exploration, production, distribution, marketing or trading of oil and gas from shale and/or oil from tar sands. BNP Paribas is also ceasing financing of projects that are primarily involved in the transportation or export of oil and gas from shale or oil tar sands. The Group will not finance any oil or gas exploration or production projects in the Arctic region [and] will continue to actively support clients in the energy sector who are committed to being partof the energy transition.
These new measures complement the Group's previous decision to reduce its support for coal mines and coal-fired power generation, to increase its total financing for renewable energy to 15 billion euro by 2020, and to set aside 100 million euro for investment in start-ups working on innovative solutions for energy transition.