BBVA Pledges to Reduce Emissions from its Oil and Gas Client Portfolio by 30% by 2030
, fromBBVA, S.A.
BBVA is dedicated to clean energy and will help the energy industry in its transition. The bank has announced that it will reduce emissions from its oil and gas portfolio by 30% by 2030. This decision comes on top of the bank's 2021 commitments in four other carbon-intensive industries and to stop financing coal companies under the zero net emissions banking alliance (NZBA).
Luisa Gómez Bravo, Global Head of Corporate & Investment Banking at BBVA, said:
"The energy industry is essential to the economic and social development of the countries where we operate. With this commitment, we seek to support the transition to more sustainable business models."
Following the absolute emissions measure, BBVA will align its exposure to the oil and gas sector with the 2050 net zero emissions scenario. It will cut emissions from its credit portfolio in exploration, drilling, and extraction activities in this sector by 30% between December 2021 and December 2030, under the most rigorous scenario at the moment (no more than a 1.5ºC temperature increase in 2050). Furthermore, BBVA has agreed not to offer direct finance for exploration, drilling, and extraction initiatives in this industry.
By taking this step in a critical area such as the energy industry, BBVA advances its commitment to be a carbon-neutral bank by 2050, not only in its own operations, where it has already been carbon-neutral since 2020 but also in the activities of its borrowers.
To assist its clients in reducing emissions, BBVA will first help them develop solid plans and establish emission reduction targets. Secondly, BBVA will support clients in their transition to other forms of low-carbon energy generation through the necessary investments that will facilitate their diversification and decarbonisation.
This announcement is in line with the REPowerEU strategy and the International Energy Agency's (IEA) principles for accelerating Europe's green transition. The IEA's Net-Zero Emissions by 2050 Roadmap calls for "massive and immediate investment in clean and efficient energy." According to the report, "if renewables grow successfully soon enough, the result will be that demand for oil and gas will be reduced, and there will be no need to develop new fields."
BBVA established sustainability as one of its strategic priorities in 2019 and announced the creation of its Global Sustainability region in 2021. That year, the bank announced its intention to eliminate its exposure to coal customers in developed countries by 2030 and globally by 2040. (as indicated in the BBVA Environmental and Social Framework). Following that, BBVA established intermediate targets for decarbonising its portfolio in four emissions-intensive areas by 2030. Together with coal, these sectors accounted for 60% of global carbon emissions.