BNP Paribas cracks down on mining clients with new coal policy

livemint.com:

BNP Paribas SA is imposing new financing restrictions as part of an updated policy around how to treat clients in the mining industry. The European Union’s biggest bank will no longer provide financing to projects dedicated to the extraction of metallurgical coal, according to an emailed statement late on Wednesday. “This new commitment is part of BNP Paribas’ efforts to align its credit portfolio in the steel sector with its net zero commitment," the bank said in the email.

The decision follows on from targets announced by the bank that are intended to reduce the intensity of carbon emissions financed across oil and gas, electricity generation, automotive, steel, aluminum and cement, it said. BNP has made access to financing increasingly difficult for clients with large carbon footprints, as it faces an ever tougher regulatory and activist environment. The lender remains the subject of a landmark lawsuit by nonprofits, who allege it isn’t living up to its environmental obligations under French law.

“BNP Paribas recalls that since 2020 it has been committed to a path towards a complete exit from the financing of the entire value chain of companies linked to thermal coal by 2030 in Europe and in the OECD countries, and by 2040 in the rest of the world," the bank said. At the same time, BNP has overtaken its peers to become the biggest provider of bonds for green projects, according to data compiled by Bloomberg. The developments have coincided with new requirements in Europe.