HSBC says it will no longer finance new oil and gas fields
HSBC has announced it will no longer provide finance for new oil and gas fields, as part of efforts to shift to a "net zero" emissions world.
Environmental campaigners welcomed a move they believe sends a "strong signal to fossil fuel giants and governments" that the appetite for funding new oil and gas fields is diminishing.
But they urged HSBC to go further and to address finance for companies that have oil and gas expansion plans – and for other banks to follow suit.
And activists claimed the move was an "embarrassment" for the British government, which has announced plans to issue scores of new oil and gas licences in the North Sea, despite efforts to position itself as a climate leader.
The International Energy Agency has said that no new oil and gas development can now take place if the world is to cut carbon emissions to zero overall – known as net zero – by 2050.
That is needed to keep temperature rises to no more than 1.5C to avoid the worst impacts of climate change.
In an update to its energy policy, HSBC said it will "no longer provide new lending or capital markets finance for the specific purpose of projects pertaining to new oil and gas fields and related infrastructure when the primary use is in conjunction with new fields".
The bank said it would continue to provide finance and advisory services to energy sector clients at the corporate level, where their plans were in line with HSBC'S 2030 targets to cut emissions, and 2050 net zero goals.
The bank also said it would continue to provide finance to maintain supplies of oil and gas in line with current and future declining demand, "whilst accelerating our activities to support clean energy deployment".
In addition, it has updated its policy on coal, including prohibiting finance for new metallurgical coal mines – such as the one the government has just greenlit in Cumbria to provide coking coal for steel production.
Jeanne Martin, head of banking programme at Shareaction, which campaigns for responsible investment, said: "HSBC'S announcement sends a strong signal to fossil fuel giants and governments.
"It sets a new minimum level of ambition for all banks committed to net zero.”