UK’s Lloyds Ditches Project Finance for New Oil and Gas Fields
Britain’s biggest domestic bank Lloyds said on Thursday it would not support direct financing to develop new oil and gas fields, joining a small number of lenders to push back on funding expansion of the industry.
Others that have tightened lending policies recently are Dutch bank ING and French lender La Banque Postale.
Climate groups welcomed the Lloyds move and called on other British banks to follow suit.
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“Lloyds’ new policy marks an important turning point in the dangerous relationship that exists between leading UK banks and fossil fuel companies,” said Tony Burdon, chief executive of pressure group Make My Money Matter.
“By becoming the first of the five largest UK high street banks to stop the direct financing of new gas, oil, and coal projects, Lloyds is making a clear statement on the future of financing for fossil fuel expansion.”
Lloyds’ exposure to dirty industries is smaller than some of its global rivals, given its focus on Britain’s economy.
The bank provided about 1 billion pounds ($1.1 billion) of finance to commercial oil and gas customers last year, according to its latest climate disclosures report, and the sector accounted for just 0.2% of its overall lending.
