British universal bank, Barclays, has published a revised Climate Change Statement to progress its climate strategy, announcing intention to stop directly financing new oil and gas projects.
Following Barclays’ commitment to finance $1trillion of Sustainable and Transition Finance by 2030, Barclays also released a Transition Finance Framework to support meeting that target and facilitate the transition finance needed to decarbonise high-emitting sectors.
The updated Climate Change Statement outlines that no project finance, or other direct finance to energy clients, for upstream oil and gas expansion projects or related infrastructure.
It has also put in restrictions for new energy clients engaged in expansion, non-diversified energy clients engaged in long lead expansion and additional restrictions on unconventional oil and gas, including Amazon and extra heavy oil.
Laura Barlow, Group Head of Sustainability, said: “Addressing climate change is a critical and complex challenge. We continue to work with our energy clients as they decarbonise and support their efforts to transition in a manner that is just, orderly and addresses energy security. Today we strengthen our commitment to the energy transition, with policies that will focus our capital and resources to the energy companies that play a key role in the transition.”
In the International Energy Agency NZE scenario, new long lead time upstream oil and gas projects are not required on a 1.5°C-aligned pathway. For current and future (declining) global demand to be satisfied, investment is needed to support existing assets while clean energy is scaled. Barclays understands the critical importance of energy being secure, reliable and affordable for our customers and clients.
Barclays say they will continue to support an energy sector in transition, focusing on the diversified energy companies investing in low carbon and with greater scrutiny on those engaged in developing new oil and gas projects.
Daniel Hanna, Head of Sustainable Finance, Corporate and Investment Bank, adds: “Publishing our Transition Finance Framework reinforces our commitment to be transparent in how we are mobilising $1trillion of Sustainable and Transition Finance by the end of 2030 while Barclays continues to be a leading global clean energy adviser and financier, unlocking growth from the energy transition.”
