The French BNP Paribas has decided to halt the financing of exploration and production of oil an gas from shale or tar sands, as well as the financing of certain LNG terminal projects.
The group’s decision follows a previous one reducing support for coal mines and coal-fired power generation and increase its total financing for renewable energy to €15 billion by 2020, and to set aside €100 million for investment in start-ups working on innovative solutions for energy transition.
According to the company’s statement, it will not finance LNG terminals that predominantly liquefy and export natural gas produced from shale.
BNP Paribas CEO, Jean-Laurent Bonnafé, said the company will support the energy transition and contribute to the decarbonisation of the economy.
The company also added it will not finance any oil and gas exploration or production projects in the Arctic region.
“BNP Paribas is committed to bringing its financing and investment activities in line with the International Energy Agency (IEA) scenario, which aims to keep global warming below 2°C by the end of the century,” the company’s statement reads.
To achieve this goal, the world must reduce its dependence on fossil fuels, starting with oil and gas from shale and oil from tar sands whose extraction and production emits high levels of greenhouse gases and has harmful effects on the environment, BNP Paribas said.