Barclays’ Significant Policy Shift

Spread the love

Barclays, a British bank and one of Europe’s largest fossil fuel funders, has announced a landmark decision to cease funding new oil and gas fields. This move, described as a “massive win” by climate campaigners, marks a significant departure from the bank’s previous stance on fossil fuel financing.

New Climate Change Statement

In a climate change statement released alongside a Transition Finance Framework plan, Barclays outlined various restrictions for its oil major clients, including ExxonMobil, Shell, TotalEnergies, and BP. This includes halting direct funding for “upstream oil and gas expansion projects” and infrastructure, with immediate effect.

Transitioning Towards Greener Sources

To incentivize energy companies to transition to greener sources, Barclays is requiring its clients to present decarbonization plans and strategies by January 2025. Additionally, the bank is imposing methane reduction targets for companies like Shell, aiming to align its financing practices with environmental sustainability goals.

Mixed Reactions from Campaigners

While the announcement has been praised as a step in the right direction, campaigners have voiced concerns that Barclays’ new policy doesn’t go far enough to address its role in climate destruction. ShareAction, a responsible investment charity, believes that Barclays could have taken more decisive action to curb fossil fuel financing.

Comparison with Other European Banks

Barclays’ decision comes amid a broader trend among European banks to align their financing practices with climate goals. However, some banks, such as HSBC and BNP Paribas, have already taken steps to halt funding for new oil and gas fields. Despite progress, there are still several European banks that have not implemented financing restrictions for fossil fuels, highlighting the need for further industry-wide action.

SOURCE: Ref Image from U.S News Money

Views:1021 0
Website | + posts

Whether writing about complex technical topics or breaking news stories, my writing is always clear, concise, and engaging. My dedication to my craft and passion for storytelling have earned me a reputation as a highly respected article writer.

Spread the love