France’s largest bank BNP Paribas announced its intention not to finance shale and oil sands projects. BNP Paribas will no longer do business with companies focused on exploration, production, distribution, marketing or trading of oil and gas from shale or oil from tar sands. Moreover, projects that are involved in the transportation and export of oil and gas from shale, and oil from tar sands, will no longer be financed either, including investment in LNG terminals liquefying and exporting predominantly shale gas.

According to Chief Executive Jean-Laurent Bonnafe, BNP Paribas is determined to accelerate energy transition to a more sustainable world. “As an international bank, our role is to help drive the energy transition and contribute to the decarbonization of the economy. As we have announced, we’re committed to working with and supporting those energy sector partners who have decided to make environmental issues a central part of their business policy.”

Shale oil and gas, trapped in shale formations are drilled by injecting water, sand, and chemicals under high pressure. The process is known as hydraulic fracturing (fracking). Fracking raises, especially in Europe, concerns over contamination of water sources.

BNP Paribas is committed to bringing its investment activities in compliance with the Paris Agreement, which aims to strengthen the global response to the threat of climate change by holding the increase in the global average temperature to well below 2 °C above pre-industrial levels.BNP Paribas emphasized world’s need to reduce its dependence on fossil fuels. Extraction and production of oil and gas from shale and oil from tar sands emits high levels of greenhouse gasses. In addition, the group will not finance any oil or gas exploration or production projects in the Arctic region.

BNP Paribas Group is determined to actively support clients in the energy sector who are committed to being part of the energy transition. It has already introduced measures intended to tackle climate change, including a target of €15 billion in financing for renewable energy projects by 2020, €100 million for start-ups focused on energy transition, ambitious policies on green bonds and withdrawal from the financing of coal mines and coal-fired power plants.

The gLAWcal Team