BNP cuts off ties with oil and gas as part of green financing goals

By Susanna Moon

Chicago, Oct. 11 – BNP Paribas Group said it will stop financing deals to the oil and gas industry as part of its commitment to reducing dependence on fossil fuels.

Specifically, BNP will stop doing business with companies involved in the exploration, production, distribution, marketing or trading of oil and gas from shale and/or oil from tar sands, according to a bank announcement.

BNP also will no longer finance projects for the transportation or export of oil and gas from shale or oil from tar sands or for oil or gas exploration or production projects in the Arctic region.

The new efforts expand the group's aim “to reduce its support for coal mines and coal-fired power generation, to increase its total financing for renewable energy to €15 billion by 2020 and to set aside €100 million for investment in start-ups working on innovative solutions for energy transition,” the release noted.

The bank said it is looking to keep its financing and investment activities in line with the International Energy Agency scenario, which targets global warming below 2°C by the end of the century.

“These measures mean that BNP Paribas will gradually cease to finance a significant number of players who are not actively part of a transition to a lower carbon economy,” the release added.

Said Jean-Laurent Bonnafe, chief executive officer of BNP: “We're a long-standing partner to the energy sector and we're determined to support the transition to a more sustainable world.”

BNP Paribas is a Paris-based banking and financial services company.

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