By Faridat Salifu
Barclays, the British universal bank, has r announced that it is halting their stance on financing new oil and gas projects.
In its recent updated Climate Change Statement, the bank revealed their decision to cease direct financing for new oil and gas projects.
This move, it was gathered, comes as part of their commitment to finance $1 trillion of Sustainable and Transition Finance by 2030.
Furthermore, Barclays said it introduced a Transition Finance Framework aimed at facilitating the much-needed transition finance to decarbonize high-emitting sectors in support of their ambitious sustainable finance goal.
Reports has it that under the revised Climate Change Statement, Barclays will no longer provide project finance or direct finance to energy clients for upstream oil and gas expansion projects or related infrastructure.
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They have also imposed restrictions on new energy clients involved in expansion, non-diversified energy clients engaged in long lead expansion, and have increased scrutiny on unconventional oil and gas projects, such as those related to Amazon and extra heavy oil.
Laura Barlow, the Group Head of Sustainability at Barclays, emphasized the bank’s commitment to addressing climate change as a critical challenge.
She highlighted Barclays’ ongoing efforts to assist energy clients in their decarbonization journey and transition towards a more sustainable energy sector.
Daniel Hanna, the Head of Sustainable Finance at Barclays’ Corporate and Investment Bank, reiterated the bank’s transparency in mobilizing $1 trillion of Sustainable and Transition Finance by 2030.
He emphasized Barclays’ role as a global clean energy adviser and financier, actively supporting the growth and development of clean energy initiatives while focusing on diversified energy companies investing in low-carbon solutions.
Barclays aims to support an energy sector in transition by prioritizing investments in companies committed to low-carbon practices and scrutinizing those engaged in new oil and gas projects.
Their strategic approach aligns with their goal of encouraging sustainable growth and aiding the global energy transition towards a greener future.
