Europe’s biggest banks provide £24bn to oil and gas firms despite net zero pledges
Europe’s biggest banks led by HSBC, Barclays and BNP Paribas have provided £24bn to oil and gas companies that are expanding production less than a year since pledging to target net zero carbon emissions, data shows.
Investments to drill new oil wells and tap fresh gas reserves, backed by funds from major banks, appear to contradict commitments to international agreements and undermine efforts to accelerate the switch to renewable energy sources, the report said.
Banks have acknowledged that they have an important role in the transition away from fossil fuels, and last April many signed up to the United Nations-backed Net-Zero Banking Alliance (NZBA), which requires they set targets to reduce carbon emissions.
However, analysis by campaign group ShareAction showed that 25 banks that signed up to reduce emissions have provided $33bn (£24bn) in loans and other financing to 50 companies with large oil and gas expansion plans. The oil companies include America’s ExxonMobil, which has tried to defy shareholder demands to cut emissions, state-owned oil company Saudi Aramco and London-listed Shell and BP who have made huge profits from gas price increases in recent months.
Since 2016, the European banks have provided financing worth $406bn.
Climate scientists and economists have warned that stopping expansion of oil and gas production is vital to reducing global carbon emissions, the key driver of the climate crisis. The International Energy Agency last May said no new oil and gas fields should be exploited to give the world a chance of reaching net zero by 2050 and avoid global heating of more than 1.5C above pre-industrial levels.
There is also a growing consensus in the investment community that oil and gas assets could be
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