LONDON (Reuters) – BNP Paribas pledged on Tuesday to reduce outstanding financing for oil extraction and production to less than 1 billion euros by 2030, a drop of more than 80% on to the current outstanding amount of 5 billion euros.
The group said in a press release that it had not financed any oil projects since 2016.
The bank also announced that it plans to reach a target of 40 billion euros in outstanding financing for the production of “low-carbon, essentially renewable energy” by 2030, against a target of 30 billion euros. by 2025 previously.
BNP Paribas will also reduce outstanding financing for gas extraction and production by more than 30% by 2030.
Many banks have announced targets to move away from hydrocarbons in favor of low carbon. Most of these objectives are, however, scheduled for 2030, which makes the progress made difficult to assess.
Scientists estimate that the threshold limit of 1.5 degrees Celsius, which would make it possible to avoid the most destructive consequences of climate change, will be crossed within only seven or eight years.
(Report Virginia Furness and Tommy Reggiori Wilkes; Camille Raynaud)
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