Credit Agricole, one of France's biggest banks, announced on Thursday, December 14, it would no longer finance any new fossil fuel extraction projects, a day after delegates agreed on the COP28 climate deal that saw the first-ever call for a "transition" away from fossil fuels approved.
"In a context of climate emergency, we need to amplify our commitment towards measures supporting the transformation of society," chief executive Philippe Brassac said in a statement.
In addition to not financing any new fossil fuel extraction projects, Credit Agricole said it would adopt a selective approach to supporting energy players engaged in this transition. This would "reduce greenhouse gas emissions of this sector twice as fast as the Net Zero 2050 scenario defined by the International Energy Agency," it said.
The Paris-based IEA has for several years designed a scenario that would see the world hit carbon neutrality in 2050 and keep alive hopes of limiting global warming to 1.5C. That scenario sees no need for the development of new fossil fuel resources.
Banks have regularly come under criticism from climate activist groups for continuing to fund new fossil fuel projects as well as supporting the current activities of energy firms. Credit Agricole said it would also finance and invest massively in renewable energy, low-carbon infrastructure, clean technologies and energy-efficiency projects.