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BNP Paribas to Stop New Oil and Gas Project Funding

Europe
BNP Paribas
Environmental, Social and Governance (ESG)

(11 May 2023 – Europe) BNP Paribas, France's largest lender, will no longer provide any financing dedicated to the development of new oil and gas fields, the bank said on Thursday, as it reiterated its target of an 80 percent cut of its oil exploration financing by 2030.

The new commitments, coming days ahead of BNP's annual shareholder meeting, also included a complete phasing out of all financing to non-diversified oil companies, according to Reuters.

“BNP Paribas no longer provides dedicated financing for the development of new oil and gas fields, regardless of the financing terms,” the bank said in a statement.

BNP Paribas had already announced plans in January to cut oil exploration financing by 80 percent by 2030, and on Thursday it confirmed it was on track with its climate change targets for the power generation, oil and gas and automotive sectors.

Environmental groups and some activist investors have highlighted the indirect funding of gas projects via loans to involved companies, as well as the bank's handling of corporate bonds, as loopholes BNP still needed to close.

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