Decisions made during the COP28 Climate Conference, aiming at the gradual elimination of fossil fuel use, are already having consequences just a few hours after the event concluded in Dubai.
Crédit Agricole announced its commitment to not finance new fossil fuel extraction projects and to “reduce financed emissions from the oil and gas sector by 75% by 2030 (compared to 2020), in contrast to the 30% reduction announced for 2022.”
Philippe Brassac, chairman of the banking group’s board of directors, one of the largest in France and Europe, stated in a press release that they have decided to “cease all financing of new fossil fuel extraction projects and adopt a selective approach to support companies in this transition.”
THIS DECISION ARISES FOLLOWING THE AGREEMENT REACHED AT COP28, HELD IN DUBAI.
Last December, Crédit Agricole had already announced the cessation of financing for new oil extraction projects, specifying some climate goals. An investigation by Le Monde on “carbon bombs” ranked Crédit Agricole seventh among banks providing significant indirect support to such projects.
As a result of this commitment, Brassac believes that “greenhouse gas emissions from this sector will be reduced twice as quickly as the Net Zero 2050 scenario published by the International Energy Agency.”
Additionally, the bank committed to tripling “annual financing in France” for “renewable energies between 2020 and 2030,” in accordance with the Dubai agreement, which called for the “tripling of global renewable energy capacity” by 2030.
Crédit Agricole also set climate goals for five new sectors: maritime transport, aviation, steel, residential real estate, and agriculture. In response to frequent criticism from non-governmental organizations for supporting fossil fuels, the bank, along with others, took advantage of COP28 to update its policies, seeking to limit the impact on global warming. BNP Paribas and Société Générale also announced similar measures during the event.
