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.

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).

Three points to remember about BNP Paribas' low-carbon commitments

€28.2Bn

in outstanding loans were dedicated by BNP Paribas to low-carbon energy production as of 30 September 2022

€40Bn

in outstanding financing for low-carbon by 2030, and especially renewable, energy production

€200Bn

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 no longer provides upstream financing dedicated to projects pertaining to the development of new oil fields and 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.

Lastly, for gas – currently considered by the EU as a transitional energy under certain conditions – BNP Paribas reserves its financing primarily to new-generation thermal power plants, with low emission rates, as well as the security of supply, gas terminals and gas transportation fleets, in line with European objectives. Outstanding financing for gas extraction and production will thus be reduced by more than 30% by 2030. 

An interim phase is planned for 2025, with the main objective of reducing our oil financing by at least 25% compared to 2020. 

In total, financing related to energy production – low-carbon and fossil fuels – represents less than 3% of all loans in the economy from BNP Paribas. The Bank therefore has no special dependence on the energy production sector; the pace of its loan portfolio’s transition is mainly linked to the real economy’s transformation capabilities.

Three points to remember about withdrawing from fossil fuels

2016

date when BNP Paribas stopped oil project financing

2030

date of full coal exit in EU and OECD countries

-80%

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%.

The Group has committed to dedicating more than 200 billion euros to the transition of its large, corporate clients to a low-carbon economy, notably through green loans, green bonds and financing to low-carbon technologies. BNP Paribas finished 2022 as the world’s number one for green bond structuring and placement*, with a total amount of 19.5 billion US dollars. This year is also a milestone where, for the first time, debts structured by all banks worldwide and issued in support of renewable energies and other environmental projects exceeded those devoted to fossil fuel companies. More recently, BNP Paribas has earmarked 250 million euros of its own capital to invest in companies fostering major innovations for the energy and ecological transition. 

To achieve its objectives, the Group relies on its core expertise, and in particular on its Low-Carbon Transition Group, which brings together nearly 200 experts in sustainable finance. Its specialists work alongside our clients to offer them the financial solutions they need to meet the challenges facing their businesses along their own net-zero transitions.

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.

Awards recognizing the Group's actions

Euromoney magazine recognized BNP Paribas as “Best Bank in the World for Sustainable Finance” in 2021 and 2022, as well as “Best Bank in the World for ESG Data and Technology” in 2022, highlighting the Group's support for its clients around the world in their own transition. 

In September 2022, Environmental Finance magazine awarded BNP Paribas its “Net-zero progression of the year – EMEA” award, recognizing how our businesses support their clients in their transition to carbon neutrality. 

In December 2022, the British NGO ShareAction gave BNP Paribas the rating of 63%, placing the Group at the top of the banks overall, as well as on climate and biodiversity criteria. 

A collective move towards net-zero by 2050

Net-zero Alliances: collective initiatives for carbon neutrality


There are four “Net-zero Alliances” stemming from the “Glasgow Financial Alliance for Net-zero” (GFANZ): the Net-zero Asset Managers Initiative, the Net-zero Asset Owner Alliance, the Net-zero Banking Alliance, and more recently the Net-zero Insurance Alliance. Their goal? Bringing together financial sector actors to contribute to the financing of a net-zero economy by 2050, through strong commitments that align greenhouse gas emissions induced by their own account credit and investment activities.

In 2021, the Group took an important step by becoming one of the founding members of the Net-zero Banking Alliance, launched by the UN Environment Finance Initiative (UNEP FI), which brings together around 100 banks. In line with this Group commitment, the insurer BNP Paribas Cardif has joined the Net-zero Asset Owner Alliance and BNP Paribas Asset Management has joined the Net-zero Asset Managers Initiative.


“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.” 

Jean-Laurent Bonnafé

Director and Chief Executive Officer, BNP Paribas

The TCFD: a working group dedicated to climate risk analysis and management

In 2015, the United Nations created the Taskforce on Climate related Financial Disclosures, which aims to improve financial transparency about climate related risks and potentially important opportunities. The recommendations of this body constitute a common international framework for making markets more efficient and strengthening the world's economies in the face of climate change. 

Since its creation, BNP Paribas has been a member of the Taskforce and has published a report based on the Taskforce's recommendations since 2020 in order to offer a complete and accessible analysis of the Group's financial information based on four pillars: Governance, Strategy, Risk Management, and Indicators & Objectives.

Read the latest TCFD report: 2021 edition pdf
2.73 MB

The open source methodology “PACTA”: aligning credit portfolios with the objectives of the Paris Agreement

To support the energy transition, the BNP Paribas Group relies in particular on the Paris Agreement Capital Transition Assessment (PACTA) methodology. This open-source solution, developed by BNP Paribas and four other major European banks – all signatories to the Katowice Commitment in 2018 – makes it possible to align greenhouse gas emissions from their credit portfolios with the objectives of the Paris Agreement, thus helping to finance a carbon neutral economy by 2050.

“The PACTA methodology is open source, the aim of this approach being to bring together financial players to align their financing with the objectives of the Paris Agreement,” explains Imène Ben Rejeb Mzah, Head of Methodology and Data within the CSR Department of BNP Paribas.

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.


2023

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. 

2022

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).

2021

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%.

2020

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.

2017

BNP Paribas ceases to provide any new financial service to unconventional hydrocarbons specialists (shale gas, shale oil, oil from tar sands, Arctic).

2017

BNP Paribas ceases all new financing of coal fired power plant projects.

2016

BNP Paribas stopped oil project financing.

2015

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.

Click here to read the full 2022 Climate analytics and alignment report pdf
6.22 MB

*According to Bloomberg

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