after the COP28 agreement, Crédit Agricole announces the end of its financing for new fossil fuel extraction projects

The agreement reached Wednesday at the Dubai summit calls on the world to “transition away” from oil, gas and coal.

It is the first bank to react, after the agreement concluded between nearly 200 countries at COP28, in Dubai, on “a transition away from fossil fuels”. The French bank, Crédit Agricole, committed, Thursday, December 14, to no longer finance new fossil fuel extraction projects and to reduce by 75% the CO2 emitted by projects financed by oil and gas. by 2030.

“We decide (…) to cease all financing of new fossil fuel extraction projects and to adopt a selective approach in supporting energy companies registered in this transition”, declares Philippe Brassac, general director of the group, in a press release announcing the update of the banking group’s climate policy. In detail, Crédit Agricole is committed to “decrease in financed emissions of -75% in the oil and gas sector by 2030 (vs 2020) compared to -30% announced in 2022”.

“Very incomplete method”

For certain NGOs like Reclaim Finance, however, the banking group’s commitment remains very vague. “If the signal is good and welcome, the method remains very incomplete”underlined Lucie Pinson, director of the NGO, in a press release.

According to the non-governmental organization, Crédit Agricole “still leaves itself the freedom to finance new fossil infrastructure projects (…) as well as companies that develop new oil and gas fields or infrastructure”. Indeed, for energy companies which have a broader activity, such as TotalEnergies or Engie, the bank will examine the financing files “case by case”, “taking into account their commitments in the transition”underlines Reclaim Finance.