Credit Agricole has announced its commitment to combat climate change by implementing a series of ambitious goals. The French lender aims to achieve carbon neutrality by 2050 and has pledged not to finance any new fossil fuel extraction projects.
As part of its strategy, Credit Agricole plans to increase its exposure to low-carbon energy by 80% through 2025, amounting to a total investment of 13.3 billion euros ($14.46 billion). Furthermore, the bank has set a target to triple its annual financing of renewable energy projects between 2020 and 2030, aligning with the European Union's commitment made at the recent COP28 conference in Dubai.
To reduce its reliance on the oil and gas sector, Credit Agricole aims to decrease its funding in this industry by 75% in 2030 compared to 2020. This represents a significant increase from the previous target of a 30% reduction.
Credit Agricole's commitment follows similar moves made by other major banks. HSBC, a London-listed bank, announced last year that it would no longer finance new oil and gas projects, while BNP Paribas, France's largest lender, declared in May that it would cease financing projects dedicated to new oil and gas development.
Philippe Brassac, CEO of Credit Agricole, emphasized the need for substantial investments in renewable energy and energy efficiency to decarbonize the economy. He believes that these measures are crucial in addressing the challenges posed by climate change.
Credit Agricole has also joined the United Nations Net Zero Banking Alliance, a coalition of over 70 European banks committed to eliminating greenhouse gas emissions from their portfolios by 2050. The bank's progress towards its climate targets will be evaluated quarterly.
By taking decisive action and adopting a comprehensive climate strategy, Credit Agricole is positioning itself as a leader in sustainable finance and making a significant contribution to the global effort to address climate change.
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