(Corrects in the last paragraph the dates for Crédit Agricole)
by Lawrence White and Simon Jessop
LONDON, Dec 14 (Reuters) – HSBC will no longer fund new oil and gas fields and will seek more information from its energy customers about their plan to cut carbon emissions, the Bank said on Wednesday. British bank.
HSBC is thus among the largest banks in the world to have confirmed the cessation of financing for oil and gas projects that have received a final investment decision after the end of 2021.
This decision echoes the recommendations of the International Energy Agency (IEA), which called last year to no longer launch projects to create (or extend) the exploitation of gas, oil and coal deposits in order to to achieve the objective of “net zero emissions” linked to energy in 2050.
“HSBC’s announcements establish a minimum level of ambition for all banks that commit to carbon neutrality,” said Jeanne Martin at Share Action, an organization that promotes responsible investment.
HSBC will continue to finance energy groups to help them revamp their businesses and develop cleaner energy sources and will review their strategic plans annually.
HSBC’s policy covers everything from biomass projects to hydrogen, nuclear and thermal coal, and aims to encourage progress in regions with different energy systems, explained the bank’s head of sustainable development, Celine Herweijer, told Reuters.
In the context of the Russian invasion of Ukraine and soaring energy prices, HSBC’s policy is also “pragmatic”, she added. The bank will thus continue to finance existing oil and gas field projects to ensure that supply matches demand over time.
“It’s not about no longer investing in fossil fuels from tomorrow. The existing fossil energy system must exist hand in hand with the growing clean energy system,” said Celine Herweijer.
“The world cannot achieve a carbon neutral future without energy companies being at the heart of the transition.”
To ensure that the oil majors are on the right track, the bank will request new information, including their production levels beyond 2030, said Celine Herweijer.
On Wednesday, the other British bank Barclays announced an increase in its objective of sustainable and transition financing to 1,000 billion dollars by 2030 and increased financing via its own funds in startups in the energy sector.
In France, Crédit Agricole announced earlier this month that it would no longer finance new oil extraction projects. The bank also foresees a complete withdrawal from the coal-fired power sector in 2030 for OECD countries and in 2040 for the rest of the world. (Report Lawrence White and Simon Jessop, Blandine Hénault for the French version, edited by Kate Entringer)