Barclays has said that it will not provide project finance, or other direct finance to energy clients, for upstream oil and gas expansion projects or related infrastructure.
Under the company’s revised Climate Change Statement, it will place an expectation for energy clients to produce transition plans or decarbonisation strategies by January 2025.
Barclays will continue to support an energy sector in transition, focusing on the diversified energy companies investing in low carbon and with greater scrutiny on those engaged in developing new oil and gas projects.
It also places restrictions for new energy clients engaged in expansion and non-diversified energy clients engaged in long lead expansion.
Additional restrictions will be placed on unconventional oil and gas, including Amazon and extra heavy oil.
Barclays previously committed to finance $1tn of Sustainable and Transition Finance by 2030.
Laura Barlow, Group Head of Sustainability, said: “Addressing climate change is a critical and complex challenge. We continue to work with our energy clients as they decarbonise and support their efforts to transition in a manner that is just, orderly and addresses energy security.
Today we strengthen our commitment to the energy transition, with policies that will focus our capital and resources to the energy companies that play a key role in the transition.”
Daniel Hanna, Head of Sustainable Finance, Corporate and Investment Bank, added: “Capital is critical to the energy transition, to decarbonise hard-to-abate sectors for the world to reach net zero emissions and create a resilient economy.
“As the number two ranked clean energy advisor globally by BloombergNEF, Barclays is strongly positioned with our capabilities and experience, global reach and role in the global economy to accelerate the investment needed for real-world decarbonisation, while supporting our energy clients’ transition.
“Publishing our Transition Finance Framework reinforces our commitment to be transparent in how we are mobilising $1tn of Sustainable and Transition Finance by the end of 2030 while Barclays continues to be a leading global clean energy adviser and financier, unlocking growth from the energy transition.”