Commercial, GHG Emissions, Finance - May 12, 2023
BNP Paribas Withdraws From Financing Oil & Gas
French bank BNP Paribas will no longer provide any financing used for the development of new oil and gas fields as it continues to align its loan portfolio with a net zero emissions trajectory.
The company will set new decarbonization targets for the steel, cement and aluminum sectors, according to an announcement.
Since 2022 (including 2023 year-to-date), BNP Paribas ranked number one in global green bonds issuance.
One of the bank’s priorities is to significantly contribute to the financing of low-carbon energies, mainly renewables, to support the broader economy’s transition away from fossil fuels.
At year-end 2022, low-carbon energies accounted for nearly 60% of BNP Paribas’ total financing of the energy sector. The bank seeks to further shift its energy-based financing to 80% for low-carbon energies, representing at least €40 billion.
BNP Paribas set new portfolio alignment targets in the three key sectors according to the guidelines from the International Energy Agency’s Net Zero Emissions (IEA NZE) by 2050 scenario, including aluminum, cement, and steel. By 2030, the bank commits to a 25% emission intensity reduction compared to 2022 in order to reach 1.2 tCO2/t crude steel, a 10% emission intensity reduction vs. 2022 in order to reach 5.6 tCO2e/t aluminum and a 24% emission intensity reduction vs. 2021 in order to reach 0.51 tCO2/t cementitious products.