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Equipment Finance Sponsored by Equipment Finance News BNP Paribas embarks on a new phase of rapid acceleration in energy transition Published: 27th January 2023 Share Building on expertise developed within its Low-Carbon Transition Group, BNP Paribas is embarking on a new phase designed to rapidly accelerate the transition to a low carbon economy. The new phase is looking to achieve a target of €40 billion in outstanding financing for the production of low-carbon, primarily renewable, energies by 2030 and reducing outstanding financing for oil extraction and production to less than €1 billion by 2030, which represents a decrease of more than 80% compared to the current balance of €5 billion; to be achieved through scheduled phasing out the financing of specialised and associated activities in the sector. BNP Paribas will also focus financing in the gas sector on new generation, low-emission thermal power plants as well as supply security, gas terminals and gas transportation fleets. Outstanding financing for gas extraction and production will thus be reduced by more than 30% by 2030. This new phase is set to last until 2030, by which time BNP Paribas will have completed transitioning over 80% of its energy production financing activities to the production of low-carbon energies. Jean Laurent Bonnafé, Chief Executive Officer of BNP Paribas said, “In 2015, when the Paris agreement was signed, financing for the production of low-carbon energy only accounted for a limited part of BNP Paribas’ loan portfolio dedicated to energy production. By 2030, it will represent nearly four-fifths of this loan portfolio. The Group will have achieved 80% of its transition in less than 15 years, confirming its position as the leader among international financing actors.” BNP Paribas has already made a major pivot towards financing low-carbon energy production: BNP Paribas’ outstanding loans for low-carbon energy production were at more than 28 billion euros at the end of September 2022, already close to 20% higher than those for fossil fuel production. The Group has secured a leading global position in green bond structuring and placement in 2022, equivalent to $19.5 billion. An exit path from oil underway: BNP Paribas stopped oil project financing in 2016; a commitment has been made to reduce outstanding financing for oil extraction and production by 25% by 2025. A coal exit is already well underway, which will be completed by 2030 in OECD member states. Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories NewsDLL launches new equipment showroom NewsCrédit Agricole Leasing & Factoring to acquire Merca Leasing Corporate Member NewsGrenke partners with IUI Global to strengthen service offerings Equipment Finance