BNP will double renewable energy investments

• 8 years ago (2015-11-20)
• Junior Isles

North America 998

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French-based banking group, BNP Paribas , has announced that it will double investment in renewable energy from €6.9 billion ($7.38 billion) to €15 billion ($16 billion) in 2020. It also said that it will no longer finance coal extraction projects.

In a statement, BNP said: “Doubling our funding for renewable energy and strengthening our carbon risk management system is an environmental requirement. It is also an economic requirement.

It went on to say that it had taken “the decision to no longer fund the extraction of coal either through mining projects or mining companies that do not have diversification strategies”. Coal has traditionally been the largest source for power generation across the world, but more recently it has come under attack due to the high levels of pollution it emits. Subsequently, many companies have yielded to pressure to stop using it as a power source.

BNP Paribas also said that it would continue to promote green bonds to institutional investors. It also said that it would invest €100 million ($107 million) in start-ups that are working on smart electricity grids and energy storage by 2020.

The announcement comes as around 200 countries are set to meet in Paris from November 30 ^th to December 11 ^th for the COP21 climate summit in order to try to reach an agreement to curb carbon emissions.