We know that our energy transition strategy may trigger the discussion, but we must be clear: we have strongly acted for many years & the results are concrete.Read more
Energy transition and climate action
At the very heart of the BNP Paribas Group's raison d'être is its ambition to be a leading player in the movement towards a more sustainable economy. In facing the climate crisis, banks have a major role to play by redirecting financing from the most carbon-intensive energy producers to those creating green energy. As number 1 in the world for the structuring and placement of green bonds at the end of 2022 *, BNP Paribas has shown its strong commitment to contributing to a sustainable economy. How will we continue to do so? Through supporting a multitude of actors and innovations that foster both low-carbon energy and the reduction of CO₂ emissions, driven by a clear purpose: financing a carbon neutral economy in 2050.
Financing the energy transition by supporting low-carbon solutions
Investing in low-carbon energy: 40 billion euros in financing by 2030
BNP Paribas has already made a major pivot towards financing the production of low-carbon energies: at the end of September 2022, financing to produce low-carbon energies as defined by the International Energy Agency (being 28.2 billion euros, of which 24.8 billion euros was for renewable energies) was already nearly 20% higher than financing for the production of fossil fuels (23.7 billion euros). Supporting our societies and economies towards net-zero is indeed a priority for BNP Paribas. In very concrete terms, this means financing projects in line with our policies and trajectories, as well as with those defined by the European Union, to progressively reduce financing for polluting sectors, while increasing it for their more sustainable alternatives.
The Group's next objective? To have reached 40 billion euros in outstanding financing for low-carbon by 2030, and especially renewable, energy production, thus completing the transition of more than 80% of its financing activities towards low-carbon energy production.
Three points to remember about BNP Paribas' low-carbon commitments
in outstanding loans were dedicated by BNP Paribas to low-carbon energy production as of 30 September 2022
in outstanding financing for low-carbon by 2030, and especially renewable, energy production
dedicated to the transition of our large corporate clients to a low-carbon economy by 2025
Withdrawing from fossil fuels: after leaving coal behind, an oil exit path underway
In its net-zero scenario, the International Energy Agency predicts that the exploration and production of oil and gas will stop as a result of increased investment in low-carbon energies between now and 2030 (with investments ranging from 1.2 trillion to 4.2 trillion dollars). This will naturally reduce the need for fossil fuels. However, due to the lack of adequate, available alternatives at the present time, fossil energies remain necessary to the proper functioning of society. BNP Paribas' alignment strategy is therefore working as part of multiple, simultaneous actions involving the supply and demand of energy.
BNP Paribas stopped oil project financing in 2016. The following year, BNP Paribas decided to cease its commercial relations with non-conventional hydrocarbon specialists (shale gas and oil, oil from tar sands). By 2030, the financing of oil exploration and production will have been reduced by 80% and will total less than 1 billion euros; today, BNP Paribas is fully committed to an oil exit path consistent with the end of the sale of new thermal vehicles in Europe. A full coal exit schedule was also defined in 2020, with a target date of 2030 in EU and OECD countries.
Three points to remember about withdrawing from fossil fuels
date when BNP Paribas stopped oil project financing
date of full coal exit in EU and OECD countries
reduction of financing for oil exploration and production by 2030
Supporting innovations and helping our clients finance their transition
By redirecting financing from fossil fuel production to low-carbon energy production and sustainable projects, BNP Paribas is wholeheartedly playing its part supporting and accelerating the transition. By 2025, in addition to increasing its financing dedicated to sustainable mobility, particularly electric vehicles, the Group has targeted the automotive sector – the third most greenhouse gas emitting – for a reduction in CO₂ emissions intensity of its financings by at least 25%.
An acceleration in the financing of renewable energy production, reflected in particular by major, recent projects:
- In France, financial adviser and leader in the financing of 2 billion euros for the Fécamp offshore wind farm, led by EDF Renewables, Enbridge and WPD, with a capacity of 500 megawatts, entering into service in 2023.
- In France, financial adviser and leader in the financing of 1.8 billion euros of the Calvados offshore wind farm, led by EDF Renewables, WPD and Maple Power, with a capacity of 448 megawatts, entering into service in 2024.
- In the UK, financial adviser and lead financier for the world's largest offshore wind farm project, the Dogger Bank Wind Farm project, which is part of the UK's strategy to achieve carbon neutrality by 2050.
- In California, leader of 1 billion dollar funding to developer Terra Gen for the second phase of the Edwards Sanborn project with a capacity of 410 megawatts of solar panels and 1.8 megawatts/hours of battery storage.
- In Latin America, lead co-arranger and coordinator of a green loan of 525 million dollars for the acquisition by Global Infrastructure Partners of Atlas, the second largest regional producer of solar energy, with a capacity of 1.6 gigawatts.
- In India, leader on 288 million dollar project providing funding for Adani Green Energy Limited, the country's largest renewable energy producer, to create 450 megawatt capacity for solar panels and wind turbines.
A collective move towards net-zero by 2050
Net-zero Alliances: collective initiatives for carbon neutrality
“As a founding member of the Net-Zero Banking Alliance, we are committed to aligning our credit and proprietary investment portfolios with clear objectives and science-based methodologies. Achieving this goal is a challenge not only for BNP Paribas but for the entire banking industry, as no bank can do it alone.”
A series of concrete commitments, especially in the most sensitive sectors
Since 2015, in order to regulate its activities related to the most sensitive sectors and to limit global warming in line with the objectives of the Paris Agreement, BNP Paribas has made many impactful decisions, always consistent - and sometimes in advance - with the objectives defined by the European public authorities. A look at the key dates to note.
BNP Paribas is embarking on a new phase of rapid acceleration in financing for low-carbon energy production and the withdrawal of fossil fuels, with clear and ambitious 2030 objectives: reaching 40 billion euros in outstanding financing for low-carbon energy production, and especially renewable; reducing current outstanding financing for oil extraction and production from 5 billion euros to 1 billion, representing a more than 80% decrease.
The Group publishes its first Climate Analytics and Alignment Report. It unveils ambitious 2025 targets for the power generation, oil and gas, and automotive sectors. It also makes a strong commitment to reduce its exposure to oil production by 25% by 2025 (as compared to 2020).
BNP Paribas is committed to reducing its exposure to oil and gas exploration and production by 10% by 2025. A target that has since risen to 12%.
BNP Paribas accelerates the timeframe of its complete coal exit: by 2030 in OECD and EU countries, and by 2040 in the rest of the world. This policy has led BNP Paribas to stop providing loans and financial services to around one in two electricity companies worldwide.
BNP Paribas ceases to provide any new financial service to unconventional hydrocarbons specialists (shale gas, shale oil, oil from tar sands, Arctic).
BNP Paribas ceases all new financing of coal fired power plant projects.
BNP Paribas stopped oil project financing.
BNP Paribas commits to progressively align its loan portfolio with the objectives of the Paris Agreement.
Climate Analytics and Alignment report with clear and ambitious targets
In May 2022, BNP Paribas published its first Climate Analytics and Alignment Report. It notably unveiled ambitious targets, by 2025, and involving immediate actions to reduce the carbon intensity from our financing in three of the most CO2 emitting sectors: electricity generation (target minimum reduction of 30%), oil and gas extraction and refining (target minimum reduction of 10%) and automobiles (target minimum reduction of 25%). While they together represent only 7% of the Group's financing, thanks to successive commitments made by BNP Paribas since 2011, their impact on the environment makes them imperative to financing the energy transition.
These reduction pathways, which are based on the International Energy Agency (IEA) 2050 carbon neutral scenario, send a strong message to stakeholders about BNP Paribas' full intention to achieve its emission reduction targets and support its clients in their own transition. This represents only one step: the Group will progressively publish interim CO2 reduction targets corresponding to the financing granted to ten business sectors, which account for 75% of the economy's emissions.
*According to Bloomberg