Sunday, April 14, 2024

Barclays sharpens climate policy, aiming for $1 trillion in sustainable finance

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Barclays has made significant alterations to its climate policy, signifying a deeper commitment to sustainability and the shift towards renewable energy. The bank pledges to halt direct financing of new oil and gas projects for energy clients, matching its ambitious initiative to direct $1 trillion towards Sustainable and Transition Finance by 2030, ESG News reports. 

This strategic shift is a testament to Barclays’ dedication to fostering environmentally responsible  practices within the financial industry. The updated Climate Change Statement from Barclays introduces key measures to better support the energy transition, signaling an end to financing for energy clients expanding in upstream oil and gas projects or their infrastructure. 

Restrictions will be placed on new energy clients contemplating expansion, emphasizing Barclays’ investment focus on low-carbon initiatives. The bank sets forth expectations for its energy clients regarding methane emissions reduction and the setting of emission targets aligned with net-zero goals, showcasing its proactive role in climate change mitigation. 

By January 2025, Barclays expects energy clients to have developed detailed transition plans or decarbonization strategies, reflecting its forward-looking approach to promoting sustainable industry practices. The Transition Finance Framework, outlined by Barclays, specifies criteria for financing transactions that facilitate the energy transition, aligning with its goal to mobilize $1 trillion in Sustainable and Transition Finance by the end of 2030. This framework highlights Barclays’ commitment to supporting decarbonization efforts in the real world. 

Laura Barlow, Group Head of Sustainability, shares, “Addressing climate change is both critical and complex. We are dedicated to supporting our energy clients through their decarbonization processes, ensuring a transition that is just, orderly, and mindful of energy security. Our policy update reinforces our commitment to the energy transition, focusing our capital and resources on companies playing a key role in this pivotal shift.” 

Daniel Hanna, Head of Sustainable Finance, Corporate and Investment Bank, points out the essential role of capital in achieving net-zero emissions and building a resilient economy. “Recognized globally by BloombergNEF as a leading clean energy advisor and financier, Barclays is well-equipped to speed up investments needed for decarbonization and support our energy clients in their transition to greener practices. Our Transition Finance Framework’s publication reflects our dedication to transparency and mobilizing a significant amount of Sustainable and Transition Finance by 2030, further positioning Barclays as a leader in the global clean energy finance arena.” 

  

Solomon Irungu
Solomon Irunguhttps://solomonirungu.com/
Solomon Irungu is a Communication Expert working with Impact Africa Consulting Ltd supporting organizations across Africa in sustainability advisory. He is also the managing editor of Africa Sustainability Matters and is deeply passionate about sustainability news. He can be contacted via mailto:solomonirungu@impactingafrica.com

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