Barclays to adopt fresh curbs on oil and gas financing

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Barclays, Britain's biggest lender to the oil and gas industry, told Reuters it will stop direct financing of new oil and gas fields and restrict lending more broadly to energy companies expanding fossil fuel production.

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09 Feb 2024

The project finance curbs are not expected to have a major impact on its business given its limited market share. The bank is not in the top 15 of major project finance banks globally, and most have yet to adopt similar restrictions.

From 2025, the bank will curb broader financing to non-diversified companies such as pure-play exploration companies if more than 10% of their expenditure goes toward expanding production over the longer term.

Barclays group head of sustainability Laura Barlow said the new policy was part of its commitment to reduce emissions linked to the bank's lending and bolster finance to greener alternatives.

«It's about strengthening our focus on the energy transition,» Barlow said.

Barlow said existing upstream energy clients that breach the 10% threshold would go through an enhanced oversight process that