BNP Paribas announces the end of financing for new gas projects

BNP Paribas has announced that it will stop financing new oil and gas fields, but will continue to support the companies involved in their development indirectly. These measures are considered insufficient by the NGOs.

Share:

The banking giant BNP Paribas, regularly attacked by NGOs for its financing of the fossil fuel industry, updated its climate policy on Thursday, announcing in particular the end of “all financing dedicated to the development of new gas fields”, according to a statement.

This policy contrasts with the practice of recent years, during which it has regularly participated in the financing of new projects. However, it does not refrain from financing companies developing new fields, as long as the money is not directly allocated to this type of project.

On oil, the bank announces “the end of financing dedicated to the development of new oil fields, regardless of the financing terms”. This is the formalization of a practice already in place as the group had stated in January that it had not directly financed any new oil projects since 2016.

However, as with gas, the bank continues to support companies that can develop new fields, without directly financing the project. BNP Paribas is also planning to “phase out” financing to players specializing in oil exploration and production that do not make the transition, as well as “reducing the share of generalist loans attributable to oil exploration and production”.

These commitments stem from the previously stated goal of seeking to cut its financing to the oil extraction and production sector by a factor of five by 2030. These “welcome” measures remain however “largely insufficient” compared to what is expected from the banking sector to limit global warming to 1.5°C compared to the pre-industrial era, reacted in a statement Lucie Pinson, director of the NGO Reclaim FinanceBNP Paribas to follow through on its commitment by demanding that its clients stop developing projects that it no longer intends to finance directly.

Environmental NGOs OxfamIn a joint press release, BNP, Notre Affaire A Tous and Friends of the Earth, which had taken BNP to court in early February for failing to meet its duty of care with regard to global warming, also denounced “measures that are too weak to meet a clear scientific requirement” and promised to be present at the bank’s general meeting the following week.

BNP Paribas, which made a record net profit of €4.4 billion in the first quarter, has set targets to reduce the emissions intensity of its steel (-25% by 2030), aluminum (-10%) and cement (-24%) businesses, i.e. the volume of CO2 per ton of material produced, compared to 2021 or 2022. The group had previously defined commitments for the oil and gas, power generation and automotive sectors.

TotalEnergies is selling half of a 604 MW Portuguese energy portfolio to the Japanese consortium MM Capital, Daiwa Energy and Mizuho Leasing for €178.5mn, retaining operation and future commercialisation of the assets concerned.
Q ENERGY France secures a bank financing of €109 million arranged by BPCE Energeco to build four new energy production facilities, totalling 55 MW of wind and solar capacity by the end of 2024.
Shell announces amendment of two annual reports after notification by Ernst & Young of non-compliance with SEC auditor partner rotation rules; however, financial statements remain unchanged.
The Financial Superintendency of Colombia approves an amendment to Ecopetrol’s local bonds and commercial paper program, enabling issuance of sustainable, indexed, or in-kind repayable instruments.
ABO Energy is selling its subsidiary ABO Energy Hellas and an energy project portfolio of approximately 1.5 gigawatts to HELLENiQ ENERGY Holdings, thus refocusing its strategic resources towards other markets, notably Germany, without major financial impact anticipated for 2025.
Iberdrola announces a supplementary dividend of €0.409 per share for 2024 under the "Iberdrola Retribución Flexible" programme, bringing the total annual remuneration to €0.645 per share, representing a year-on-year increase of 15.6%.
BHP has signed contracts with COSCO Shipping to charter two ammonia-powered Newcastlemax bulk carriers, primarily for transporting iron ore between Western Australia and Northeast Asia starting from 2028.
CBAK Energy and Anker Innovations jointly launch a battery cell manufacturing facility in Malaysia, with a commercial potential estimated at $357 million, further strengthening their strategic partnership in the lithium-ion battery sector.
German energy group Badenova plans to invest $4.64 billion in its energy networks and capacity by 2050, including $232 million committed from 2025, according to the company's recently published annual financial results.
ORIX announces the sale of the majority of its stake in Greenko to AM Green Power and commits a new USD 731mn investment in the Luxembourg-based AMG holding, confirming its strategic repositioning in next-generation energy.
Invenergy seals four further contracts with Meta to supply nearly eight hundred megawatts of solar and wind power to the group’s data centres, lifting total cooperation between the two companies to one point eight gigawatts.
Pedro Azagra leaves his role as CEO of Avangrid to become CEO of Iberdrola, while Jose Antonio Miranda and Kimberly Harriman succeed him as CEO and Deputy CEO respectively of the American subsidiary.
The US investment fund Ares Management enters Plenitude's capital by acquiring a 20% stake from Eni, valuing the Italian company at 10 billion euros and reinforcing its integrated energy strategy.
ENGIE secures a contract to reduce Airbus' industrial emissions in France, Germany, and Spain, targeting an 85% decrease by 2030 through various local energy infrastructures.
Alain Rhéaume, Chairman of Boralex’s Board of Directors for eight years, will leave his position by December, following the appointment of his successor by the governance committee of the Canadian energy group.
Norwegian group Statkraft plans an annual cost reduction of NOK2.9bn ($292 million) by 2027, citing possible job cuts amid rising financial burdens and volatility in the European energy market.
EDF merges EDF Renouvelables and its International Division into EDF power solutions, led by Béatrice Buffon, to optimise its global 31 GW low-carbon energy portfolio and strengthen its international positioning.
TotalEnergies announces a strategic partnership with Mistral AI to establish a dedicated innovation laboratory integrating artificial intelligence tools aimed at enhancing industrial efficiency, research, and customer relations.
The Energy Transitions Commission warns of economic risks tied to growing protectionism around clean technologies, while calling for global consensus on carbon pricing.
Baker Hughes has reached an agreement to sell its precision sensor product line to Crane Company for $1.15bn, thereby refocusing its operations on core competencies in industrial and energy technologies.