Credit Agricole to Stop Financing New Fossil-Fuel Projects -- Update

By Helena Smolak and David Sachs

Credit Agricole said it won't finance any new fossil-fuel extraction projects and that it aims to be carbon neutral by 2050, a day after governments at the United Nations COP28 climate conference agreed for the first time to transition away from coal, oil and natural gas.

The French lender said Thursday that it expects to increase its exposure to low-carbon energy by 80% through 2025 to a total of 13.3 billion euros ($14.46 billion).

In addition, Credit Agricole aims to triple its annual financing of renewable energy projects between 2020 and 2030, mirroring a similar pledge made by the European Union at the COP28 conference in Dubai.

The bank said it aims to have reduced its funds in the oil and gas sector by 75% in 2030 compared with 2020. Previously, that target was a reduction of 30%.

Credit Agricole's new targets follow similar moves by other major banks. Last year, London-listed bank HSBC said it would no longer finance new oil-and-gas projects. In May, France's largest lender, BNP Paribas, said it would no longer finance projects dedicated to new oil and gas development.

"We need to massively invest in renewable energy and the energy sobriety in order to decarbonize the economy," said Philippe Brassac, chief executive officer of Credit Agricole.

In May, Credit Agricole committed to end its participation in the thermal coal industry by 2030 in countries that are members of the Organization for Economic Cooperation and Development, a group of 37 democratic countries with market-based economies.

Credit Agricole's climate strategy progress will be reviewed quarterly, the company said.

Credit Agricole is one of more than 70 European banks that has joined the United Nations Net Zero Banking Alliance, a group that has pledged to phase out greenhouse gas emissions from their portfolios by 2050, with specific targets.

Write to Helena Smolak at [e-mail] and David Sachs at [e-mail]

(END) Dow Jones Newswires

December 14, 2023 06:24 ET (11:24 GMT)

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