British bank Barclays said Friday that it would stop directly financing energy clients’ new oil and gas projects as part of its revised climate strategy aimed at decarbonizing high-emitting sectors.
Barclays updated its Climate Change Statement to progress its climate strategy and committed $1 trillion for sustainable and transition financing by 2030, the UK bank said in a statement.
“Barclays also releases a Transition Finance Framework to support us in meeting that target and facilitate the transition finance needed to decarbonize high-emitting sectors,” the statement read.
In line with the framework, the bank will not finance “energy clients, for upstream oil and gas expansion projects or related infrastructure' and will restrict new energy clients engaged in expansion and non-diversified energy clients engaged in long-term expansion.
“Additional restrictions will be placed on unconventional oil and gas, including Amazon and extra heavy oil,” it added.
The British Bank will require energy clients “to have 2030 methane reduction targets, a commitment to end all routine and non-essential venting and flaring by 2030, and near-term net zero aligned Scope 1 and 2 targets by January 2026.”
Barclays is considered to be one of the UK's largest lenders to the oil and gas industry.
Reporting by Nuran Erkul Kaya in London
Writing by Handan Kazanci
Anadolu Agency
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