Crédit Agricole pledges to stop financing fossil fuel projects

The news: France’s second largest listed bank has announced it will stop financing new oil and gas projects as part of its aim to be carbon neutral by 2050.

The numbers: The lender said it will increase its exposure to low carbon energies by 80% between 2020 and 2025, reaching €13.3 billion ($21.8 billion) in 2025. The bank also committed to a 75% reduction of oil and gas financed emissions by 2030, an increase on its previous commitment to reduce by 30%.

The context: Crédit Agricole explained that in the context of the COP28 summit, accelerating investment in and financing of low-carbon energy is imperative to effectively contribute to the urgent energy transition. The company said it plans to review its climate strategy on a quarterly basis.

What they said: Philippe Brassac, CEO of Crédit Agricole said: “In a context of climate emergency, we need to amplify our commitment towards measures supporting the transformation of society […] Furthermore, we will not finance any new fossil fuel extraction projects and we will adopt a selective approach to support energy players engaged in this transition, which will consequently reduce green-house gas emissions of this sector twice as fast as the Net Zero 2050 scenario defined by the International Energy Agency.”