Synopsis
BNP Paribas, a European bank, announced its cessation of financing for metallurgical coal extraction projects. This decision aligns with the bank's strategy to realign its credit portfolio in the steel industry with its goal of achieving "net zero" emissions. BNP Paribas had previously committed to exiting financing for thermal coal across its entire value chain by 2030 in Europe and OECD countries and by 2040 globally.
Article
BNP Paribas, a prominent European financial institution, recently unveiled a strategic move, deciding to cease funding projects specifically dedicated to the extraction of metallurgical coal. This step is part of the bank's broader objective to bring its credit portfolio in the steel sector in line with its ambitious net-zero emissions commitment.
In the years 2022 and 2023, the bank established goals aimed at reducing the carbon emission intensity associated with financing across various sectors, including oil and gas, electricity generation, automotive, steel, aluminium, and cement.
Reiterating its commitment, BNP Paribas highlighted its trajectory established since 2020, aimed at a complete departure from financing the entire value chain linked to thermal coal. The bank plans to achieve this milestone by 2030 within Europe and OECD countries and by 2040 on a global scale, showcasing its dedication to environmental sustainability.
Conclusion
This strategic shift signifies the bank's ongoing efforts to not only mitigate its environmental impact but also align its financial strategies with global climate goals. BNP Paribas' decisive step away from financing metallurgical coal extraction projects represents a pivotal move in fostering a sustainable future for the steel industry.
