Tuesday 13 February 2024

Barclays halts financing for new oil and gas projects

Barclays halts financing for new oil and gas projects

Barclays has announced changes in its financing approach, ceasing direct funding for new oil and gas projects and imposing stricter rules on clients expanding in these sectors.

The bank requires energy companies to establish methane reduction targets and transition plans.

These adjustments aim to support the shift towards cleaner energy.

The bank has also released a Transition Finance Framework to guide transition finance transactions, contributing to its target of facilitating $1 trillion (£790bn) of Sustainable and Transition Finance between 2023 and 2030.

Laura Barlow, Group Head of Sustainability, said: "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, added: "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."

Written by

Sumit Bose

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