Barclays stops finance to new oil & gas projects

Barclays has published a revised climate change statement that includes an end to new finance for oil and gas projects.

The updated climate change statement outlines:

  • No project finance, or other direct finance to energy clients, for upstream oil and gas expansion projects or related infrastructure
  • Restrictions for new energy clients engaged in expansion
  • Restrictions on non-diversified energy clients engaged in long lead expansion
  • Additional restrictions on unconventional oil and gas, including Amazon and extra heavy oil
  • Requirements for energy clients to have 2030 methane reduction targets, a commitment to end all routine / non-essential venting and flaring by 2030 and near-term net zero aligned Scope 1 and 2 targets by January 2026
  • Expectation for energy clients to produce transition plans or decarbonisation strategies by January 2025

Barclays says it will continue to support the energy sector transition, focusing on the diversified energy companies investing in low carbon and with greater scrutiny on those engaged in developing new oil and gas projects.

Barclays has also published its Transition Finance Framework outlining the criteria for transition finance transactions which will also be included towards Barclays’ target to facilitate $1trillion of sustainable and transition finance between 2023 and by the end of 2030.

Laura Barlow, Group Head of Sustainability, said, “Addressing climate change is a critical and complex challenge. We continue to work with our energy clients as they decarbonise and support their efforts to transition in a manner that is just, orderly and addresses energy security. Today we strengthen our commitment to the energy transition, with policies that will focus our capital and resources to the energy companies that play a key role in the transition.”

Daniel Hanna, Head of Sustainable Finance, Corporate and Investment Bank, said, “Capital is critical to the energy transition, to decarbonise hard-to-abate sectors for the world to reach net zero emissions and create a resilient economy. As the number two ranked clean energy advisor globally by BloombergNEF, Barclays is strongly positioned with our capabilities and experience, global reach and role in the global economy to accelerate the investment needed for real-world decarbonisation, while supporting our energy clients’ transition.

“Publishing our Transition Finance Framework reinforces our commitment to be transparent in how we are mobilising $1trillion of Sustainable and Transition Finance by the end of 2030 while Barclays continues to be a leading global clean energy adviser and financier, unlocking growth from the energy transition.”