HSBC has ruled out financing further oil and gas exploration projects

HSBC she decided It does not fund new oil and gas exploration projects To advance the energy transition towards climate neutrality in 2050, according to its new energy strategy, published on Wednesday.

The UK bank noted that fossil fuels “have a role to play” in the transition period, though Its weight reduces energy consumption. HSBC compiles data from last year’s report from the International Energy Agency (IEA) which detailed that the 2020 funding level should be maintained until 2030 and then reduced.

So, HSBC It will continue to provide financing to clients who maintain their oil and gas operations To cover current and future demand for hydrocarbons. However, the bank has also cited other scientific reports to the effect Outlook for oil and gas demand to 2050 ‘more than covered’ with existing fields. For this reason, it will not provide financing for the creation of a new exploitation or for infrastructure whose primary use is in new areas.

Likewise, the financial institution will apply more stringent requirements To ensure that customers apply the “strongest standards” in the industry when extracting oil from oil shale. They will also gradually lose weight Extra heavy oilone of the crude oil derivatives with the highest emission intensity.

These principles will be embodied in a tangible way through series of borders. HSBC will not enter into a new business relationship with a potential customer who has more than 10% of its capital expenditure (capex) on hydrocarbon exploration; Which has more than 10% of the production volume in very deep water oil or gas projects, shale oil projects or very heavy oil.

Relationships will not be established if the oil generation capacity is greater than 10% of the total capacity or if it is greater than one gigawatt (GW). or if the customer operates energy assets in socially or environmentally “critical” areas.