In a significant move reflecting its commitment to addressing climate change, British bank Barclays announced on Friday that it would no longer provide direct financing for new oil and gas projects. However, despite this shift, the bank faced criticism from campaigners who argued that the measures did not go far enough.
As part of its updated climate strategy, Barclays stated that it would also scale back lending for existing fossil fuel projects, aligning itself with increasing pressure from activist investors to take decisive action on climate change.
The bank’s revised Climate Change Statement emphasized its focus on clients actively transitioning to sustainable energy practices. Specifically, Barclays declared that it would cease project finance and other direct financial support for upstream oil and gas expansion projects and related infrastructure. Moreover, the bank announced restrictions on new and non-diversified oil and gas clients engaged in expansion, along with additional curbs on unconventional oil and gas, including extra heavy oil.
In a bid to further drive environmental accountability, Barclays set a deadline for energy clients to produce transition plans or decarbonization strategies by 2025.
Despite these measures, critics argued that Barclays’ actions fell short of what is necessary to combat climate change effectively. They urged the bank to take more ambitious steps in aligning its financing activities with global climate goals.
As Barclays navigates the evolving landscape of environmental responsibility and financial sustainability, its decision marks a significant milestone in the global effort to transition towards a greener, more sustainable future.
