Barclays plans to pump more money into renewables

Bloomberg

Barclays Plc plans to step up its financing of renewable energy as Russia’s war on Ukraine adds to the urgency of moving away from fossil fuels.
“The appalling invasion of Ukraine has made it even more imperative to accelerate the energy transition,” Barclays Chairman Nigel Higgins said.
Barclays expects that recent events will boost “demand for investment in low-carbon energy infrastructure.” The bank said in a climate-strategy report that it’s “determined to finance, on an even greater scale, the investment needed for transition.”
The onset of war in Europe and its fallout on energy markets threatens to complicate the race against global warming. Higgins said climate pledges may now be harder to keep. And he predicted a “volatile and non-linear” path toward cutting financed emissions, citing
factors “beyond our control.”
Since the Paris climate accord was struck in 2015, Barclays has underwritten over $58 billion of fossil-fuel bonds, more than any of its European peers, according to data compiled by Bloomberg. In the same period, it helped arrange more than $40 billion in green bonds, ranking it fifth in Europe.
Barclays said it’s targeting a 30% reduction in the CO2 intensity of its power portfolio by 2025. The company also intends to cut the absolute emissions of its energy portfolio by 15% in the same period.
The British bank plans to cut the carbon footprint of lending and underwriting across the highest-emitting sectors in its portfolio, and added cement and steel targets to existing energy and power goals. The bank’s executive directors will also see their pay affected, as Barclays promises to align remuneration with the achievement of its climate goals.
Other UK banks are also trying to burnish their climate credentials against the backdrops of accelerating global warming and a war-fuelled energy crisis. NatWest Group Plc said it plans to put climate resolutions to shareholders at this year’s annual general meeting, marking a first for the lender.
“Tackling climate change is a key strategic priority for NatWest Group,” CEO Alison Rose said in a statement. “It is also near the top of the agenda for many of our shareholders, and we want to work with all of our stakeholders help to shape our future planning, execution and reporting on climate.”
Earlier this month, HSBC Holdings Plc promised to “phase down” its financing of the fossil fuel industry, sending a warning to oil and gas clients as the bank works toward its target of net-zero emissions. The step is in line with “what is required to limit the global temperature rise to 1.5 degrees Celsius,” HSBC said last week.