Barclays on Feb. 15 said it was tightening lending criteria for coal power and would stop financing oil sands E&P but did not announce new restrictions on oil and gas lending as some rivals have.
The British bank extended a previously announced plan to phase out financing for clients involved in coal-fired power generation by 2030 from the U.K. and European Union to include other countries in the OECD.
Banks globally have been detailing their plans to cut emissions and keep a lid on the rise in global temperatures, but environmental campaigners accuse them of moving too slowly and have called on them to stop financing new oil and gas drilling.
Announcing results for 2022, Barclays said it will stop financing all oil tar sands companies, as well as new oil sands pipelines, whereas previously it had said it would work with those firms undertaking efforts to reduce their emissions.
However, some environmental activists had hoped the bank would announce a new policy on financing for oil and gas after HSBC said in December it would stop direct funding new oil and gas fields.
Barclays also set its first emission-cutting target for the automotive manufacturing industry, with a pledge to reduce emissions intensity by between 40% and 64% by 2030 against a 2022 baseline.
For the residential real estate sector, Barclays set a "convergence point" of reducing emissions by 40% by 2030, which it said was not a target because decarbonizing U.K. homes was dependent on wider changes beyond its control.
The bank said it was on track to meet its 2030 targets with reductions in financed emissions for industries including energy, power and steel.
The absolute emissions generated by its energy clients have dropped 32% since 2020, putting it on track for a 40% reduction by 2030, but the bank acknowledged this was helped by cash-rich energy customers needing less finance in 2022.
Campaign groups said they were disappointed Barclays had not made further commitments to curtail financing fossil fuel expansion.
"By continuing on this path, Barclays is ignoring the science and disregarding its customers. Because any strategy which does not include restrictions on financing for new oil and gas represents a failure of leadership, ambition, and action," Tony Burdon, CEO at Make my Money Matter said in a statement.
ShareAction's Jeanne Martin called on Barclays to update its oil and gas policy before its 2023 annual general meeting "to meet science-based standards on climate" or face further shareholder pressure.
Recommended Reading
US Drillers Cut Oil, Gas Rigs for Fifth Week in Six, Baker Hughes Says
2024-09-20 - U.S. energy firms this week resumed cutting the number of oil and natural gas rigs after adding rigs last week.
Western Haynesville Wildcats’ Output Up as Comstock Loosens Chokes
2024-09-19 - Comstock Resources reported this summer that it is gaining a better understanding of the formations’ pressure regime and how best to produce its “Waynesville” wells.
August Well Permits Rebound in August, led by the Permian Basin
2024-09-18 - Analysis by Evercore ISI shows approved well permits in the Permian Basin, Marcellus and Eagle Ford shales and the Bakken were up month-over-month and compared to 2023.
Kolibri Global Drills First Three SCOOP Wells in Tishomingo Field
2024-09-18 - Kolibri Global Energy reported drilling the three wells in an average 14 days, beating its estimated 20-day drilling schedule.
Permian Resources Closes $820MM Bolt-on of Oxy’s Delaware Assets
2024-09-17 - The Permian Resources acquisition includes about 29,500 net acres, 9,900 net royalty acres and average production of 15,000 boe/d from Occidental Petroleum’s assets in Reeves County, Texas.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.