Barclays has recently announced significant revisions to its climate policy, reaffirming its commitment to advancing the global transition towards sustainable energy.
The company has pledged to cease direct financing of new oil and gas projects for energy clients, in alignment with its ambitious goal to finance $1 trillion of Sustainable and Transition Finance by 2030, according to ESG News.
These strategic changes underscore Barclays’ dedication to promoting environmentally responsible practices within the financial sector.
The announcement details Barclays’ updated Climate Change Statement, which introduces several key measures to enhance its support for the energy transition.
Notably, the company will no longer provide project finance or direct funding to energy clients involved in upstream oil and gas expansion projects or related infrastructure.
Additionally, new energy clients engaged in expansion will face restrictions, reflecting Barclays’ commitment to prioritising investments in low-carbon initiatives.
The British bank has also emphasised the importance of transition strategies and decarbonisation efforts for energy clients, setting clear expectations for methane reduction targets and net-zero aligned emissions targets.
Furthermore, the company expects energy clients to develop comprehensive transition plans or decarbonisation strategies by January 2025, highlighting its proactive approach to driving sustainable practices across industries.
The Transition Finance Framework, which has been recently outlined by Barclays, has revealed the criteria for transition finance transactions aimed at facilitating the necessary capital for the energy transition.
This framework aligns with the company’s goal of mobilising $1tn of Sustainable and Transition Finance by the end of 2030, reflecting its commitment to supporting real-world decarbonisation efforts.
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.”
Daniel Hanna, Head of Sustainable Finance, Corporate and Investment Bank, adds, “Capital is critical to the energy transition, to decarbonise hard-to-abate sectors for the world to reach net zero emissions and create a resilient economy. As the number two ranked clean energy advisor globally by BloombergNEF, Barclays is strongly positioned with our capabilities and experience, global reach and role in the global economy to accelerate the investment needed for real-world decarbonisation, while supporting our energy clients’ transition.
“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.”
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