Pair of major European banks backs away from oil and gas bond deals

illuminem summarizes for you the essential news of the day. Read the full piece on the Financial Times or enjoy below:

🗞️ Driving the news: French banks Crédit Agricole and BNP Paribas, the second and third largest banks in Europe by assets, have decided to halt underwriting untargeted bond issuances for the oil and gas sector unless they include green restrictions, reflecting heightened scrutiny on green finance

🔭 The context: This move follows increased pressure on banks to make their portfolios more climate-sensitive and comes after global pledges to limit fossil fuel financing made at the UN COP26 climate summit in 2021
• Senior executives from these banks have been questioned by the Paris Senate on their involvement with oil and gas companies like TotalEnergies

🌍 Why it matters for the planet: By refusing to back non-green bond deals, these banks are signaling a significant shift towards more environmentally responsible financing, potentially reducing the capital available for fossil fuel expansion and encouraging investment in sustainable projects

⏭️ What's next: This policy change could influence other global banks to adopt similar restrictions, further integrating climate considerations into financial decision-making and promoting a transition towards greener energy sources

💬 One quote: "This kind of bond deal cannot happen in the future as a consequence of our strategy," said Crédit Agricole

📈 One stat: Global lenders underwrote over $270 billion in corporate bonds for fossil fuel companies last year, an increase of nearly $30 billion from the previous year

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