Barclays focuses capital and resources on supporting energy companies to decarbonise

9 February 2024

Barclays today publishes a revised Climate Change Statement to progress its climate strategy and continues its focus on clients actively engaged in the energy transition. Following Barclays’ commitment to finance $1trillion of Sustainable and Transition Finance by 2030, Barclays also releases a Transition Finance Framework to support us to meet that target and facilitate the transition finance needed to decarbonise high-emitting sectors.

The updated Climate Change Statement outlines:

• No project finance, or other direct finance to energy clients, for upstream oil and gas expansion projects or related infrastructure.
• Restrictions for new energy clients engaged in expansion.
• Restrictions on non-diversified energy clients engaged in long lead expansion.
• Additional restrictions on unconventional oil and gas, including Amazon and extra heavy oil.
• Requirements for energy clients to have 2030 methane reduction targets, a commitment to end all routine / non-essential venting and flaring by 2030 and near-term net zero aligned Scope 1 and 2 targets by January 2026.
• Expectation for energy clients to produce transition plans or decarbonisation strategies by January 2025.

In the International Energy Agency NZE scenario, new long lead time upstream oil and gas projects are not required on a 1.5°C-aligned pathway. For current and future (declining) global demand to be satisfied, investment is needed to support existing assets while clean energy is scaled. Barclays understands the critical importance of energy being secure, reliable and affordable for our customers and clients.

Barclays will continue to support an energy sector in transition, focusing on the diversified energy companies investing in low carbon and with greater scrutiny on those engaged in developing new oil and gas projects.

The scale of our business gives us the opportunity to help finance the energy transition; to use our global reach, products, expertise and position in the global economy to work with our clients, including those in the energy sector, as they transition to a low-carbon business model.

This policy is an important lever for reducing our financed emissions and has been informed by engagement with stakeholders – shareholders, clients, climate experts and civil society groups, including ShareAction. Barclays is committed to continue to engage regularly with its stakeholders as its climate strategy evolves in light of the rapidly changing external environment.

Details can be read in the Barclays Climate Change Statement (PDF 724KB) and information on the progress of our climate strategy will be provided in the Climate and Sustainability Report, due to be published in February 2024.

Source: Barclays