Spanish Bank financing of oil and gas projects that are not compatible with the Paris Agreement

CdM | Despite their commitment to international initiatives, since 2016, the world’s 60 largest banks have spent a total of $3.8 trillion on fossil fuels. Financing fossil fuel projects and companies generates greenhouse gas emissions incompatible with the economic decarbonization needed to limit global warming to around 1.5°C. In the case of Spanish banks, Bankia, Bankinter, BBVA, CaixaBank, Banco Sabadell and Banco Santander have committed to this type of initiative. However, according to a RAN and BankTrack report, Banco Santander financed fossil fuels between 2016 and 2020.

In the February 2021 report, The International Institute for Law and Environment (IIDMA) has analyzed the sectoral policies of the six major Spanish banks To determine whether its commitments are sufficient to achieve the goals of the Paris Agreement. Given the shortcomings of these sectoral commitments, IIDMA made recommendations to Spanish banks. However, since this report, BBVA and Santander were the only two banks to significantly adjust their liabilities, particularly in the mining and energy sectors. Note the adoption of these banks to commit to gradually reducing their exposure to the thermal coal sector by 2030.

While BBVA and Santander’s new commitments on thermal coal show more ambition, It is necessary to ban funding for other fossil fuels. Remember, the International Energy Agency warns of the mismatch between developing new oil and gas projects in the energy sector and achieving carbon neutrality by 205029. Thus, Spanish banks must abide by the ban on financing new oil and gas projects or companies Develop projects that are incompatible with the decarbonization of the energy sector in accordance with the objectives of the Paris Agreement.

newly, BBVA and Santander boosted the ambition of their sectoral policies, although it was already Spain’s most ambitious bank. it is then It is imperative that Bankinter and CaixaBank improve their sectoral commitments in line with the objectives of the Paris Agreement. In the case of CaixaBank, the merger with Bankia created a large bank that must be committed to fighting climate change. Finally, Banco Sabadell indicates that it is in the process of setting standards for the sector, which will demonstrate Banco Sabadell’s climate ambition.