Barclays, the largest funder of fossil fuels in Europe between 2016 and 2021 according to a Rainforest Action Network report, has declared that it will cease direct funding for new oil and gas projects as well as for related infrastructure.
The banking giant made the announcement in its revised Climate Change Statement, published on February 9, revealing that it will impose restrictions on “new energy clients engaged in expansion” and on “non-diversified energy clients engaged in long lead expansion.”
In the statement, the bank also vows to cease direct funding for any oil and gas projects in environmentally sensitive areas like the Amazon and the Arctic Circle.
“Addressing climate change is a critical and complex challenge,” said Group Head of Sustainability at Barclays, Laura Barlow. “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.”
Despite positive reactions from campaign groups, however, concerns linger about the extent of Barclays’ commitment.
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For example, ShareAction, a campaigner for responsible investing, welcomed Barclay’s initiative but criticized the lack of a clear stance against financing companies exclusively dedicated to fossil fuel extraction, including environmentally controversial practices like fracking.
“Barclays is wrong not to have ruled out financing companies that focus exclusively on fossil fuel extraction,” ShareAction said. “This should include fracking, which is causing so much environmental and social harm and is an activity the bank is heavily exposed to.”
Tony Burdo, CEO of Make My Money Matter, described Barclays’ plan as “inadequate in scope and in ambition” and pointed out that direct funding for oil and gas projects is only part of the bank’s total lending for oil and gas:
“While they finally caught up with other major European banks like Lloyds by ruling out direct project finance for fossil fuels, the reality is this covers just a fraction of their oil and gas lending. This new policy lets them continue funnelling billions to those companies developing catastrophic new fossil fuel projects around the world.”
Editor’s Note: The opinions expressed here by the authors are their own, not those of Impakter.com — Featured Photo Credit: Maria Lupan.
