BNP Paribas pledges to cease financing of coal sector

Written by Michael Griffiths

26/11/2019

BNP Paribas has announced it is to cease all financing related to the thermal coal sector by 2030 in the European Union, and worldwide by 2040.

The group is also strengthening its support for the development of renewable energies, with a new financing target of €18bn by 2021.

While funding for new coal fired power plant projects has completely ceased since 2017, BNP Paribas’ policy has been strengthened about general credits granted to electricity producers, some of whose production is still based on coal.

BNP Paribas said it will strengthen its dialogue with utilities producing part of their electricity from coal, to analyse the extent to which their evolution trajectory is compatible with the group's exit objectives by geographic area.

Furthermore, the bank has announced it will cease its relations with producers planning new coal fired-power generation capabilities.

In 2015, BNP Paribas had announced its intention to double its financing for renewable energies, in order to reach €15bn by 2020. As these financings had reached €15.4bn on 31 December 2018 and therefore exceeded this initial target, BNP Paribas has defined a new financing target of €18bn by 2021.

BNP Paribas director and CEO, Jean Laurent Bonnafé, commented: “Like all players in the economy and society whose objective is to contribute to the necessary transition to a lower carbon economic model, BNP Paribas has a role to play.

“As a bank, we have the opportunity, and the will, to participate in the acceleration of the energy transition by supporting our customers in this necessary transformation.

“To succeed, such a transition must be fair and balanced, taking into account the reality of the economic model and the daily needs of people around the world.

“These new commitments, which have clear objectives, mark a new stage in our objective of making a decisive contribution to the climate challenge.”

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