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BNP Paribas to stop supporting oil and gas companies

EBR Staff Writer Published 11 October 2017

BNP Paribas has announced that it will stop working with oil and gas companies in a move to accelerate its support for renewable energy projects and to the fight against climate change.

The financial services giant will no longer do business with firms that are primarily engaged in exploration, production, distribution, marketing or trading of oil and gas from shale and/or oil from tar sands.

It has also decided to stay away from financing of projects like pipelines and LNG terminals that mainly involve transportation or export of oil and gas from shale or oil sands.

Further, it will not engage with any oil or gas exploration or production projects carried out in the Arctic region.

However, BNP Paribas said that it will continue to actively back clients in the energy industry who are committed to adopt the energy transition.

BNP Paribas CEO Jean-Laurent Bonnafé said: “We’re a long-standing partner to the energy sector and we’re determined to support the transition to a more sustainable world. As an international bank, our role is to help drive the energy transition and contribute to the decarbonisation of the economy.

“As we have announced, we’re committed to working with and supporting those energy sector partners who have decided to make environmental issues a central part of their business policy.”

The new announcement by BNP Paribas is in line with its previous decisions to cut down on its support for coal mines and coal-fired power generation.

Previously, the banking giant had announced that it will invest €15bn in renewable energy sector by 2020. It had also allocated €100m for investment in emerging companies focused on developing innovative solutions for energy transition.

Last year, BNP Paribas’ rival Societe Generale had also made a similar decision by withdrawing financial support to coal-fuelled power plants or related infrastructure as part of its commitment to renewable energy sector.

Image: BNP Paribas plans to stop financing oil and gas exploration and production projects. Photo: courtesy of num_skyman/Freedigitalphotos.net.