Europe’s banks fund oil and gasoline enlargement regardless of IEA warning -report

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LONDON, Feb 14 (Reuters) – European banks are offering billions of {dollars} of funding to broaden oil and gasoline manufacturing, a report on Monday confirmed, regardless of Worldwide Power Company steering in opposition to new services in an effort to gradual international warming.

Throughout 2021, twenty 5 of the area’s main banks collectively offered $55 billion to power firms planning to broaden oil and gasoline manufacturing, accountable funding non-profit ShareAction stated within the report.

Though that marked a fall from the $106 billion lent in 2020 and $83 billion in 2019, it was greater than the $49 billion and $50 billion lent in 2018 and 2017, respectively.

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An IEA report in Might stated there needs to be no funding in new oil and gasoline fields in an effort to have a 50% probability of capping international warming at 1.5 levels Celsius above the pre-industrial common. learn extra

The financing comes regardless of 24 of the banks themselves pledging to decarbonise their mortgage portfolios, the report stated, including that HSBC (HSBA.L), Barclays (BARC.L) and BNP Paribas (BNPP.PA) have been among the many greatest suppliers of finance in 2021.

ShareAction stated it was calling on buyers to demand the banks implement insurance policies to limit finance for oil and gasoline enlargement and again climate-related shareholder resolutions within the upcoming season for annual normal conferences.

“Final yr shareholders have been instrumental in pushing banks to undertake or strengthen restrictions on coal finance,” stated Kelly Shields, Senior Officer for Banking Requirements at ShareAction.

“This yr they should replicate that success with oil & gasoline enlargement,” Shields added.

A HSBC spokesperson stated it was working with purchasers over the power transition and would publish science-based targets to align oil and gasoline financing with the objectives and timelines of the Paris Settlement on Feb. 22.

A Barclays spokesperson stated it additionally aimed to align its financing with the worldwide local weather deal reached in 2015, and had set a goal for a 15% absolute discount in financed emissions from its power sector purchasers by 2025.

A spokesperson for BNP Paribas was not instantly out there to remark when contacted by Reuters.

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Reporting by Simon Jessop and Tommy Wilkes; Enhancing by Alexander Smith

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