Spain's BBVA to Phase Out Coal by 2040
By Maitane Sardon
Banco Bilbao Vizcaya Argentaria SA on Friday pledged to reduce
to zero its exposure to coal-related activities over the next 20
years in an effort to align its financed emissions with the Paris
Agreement on climate change.
The Spanish bank said its goal is "to have zero exposure to coal
clients in developed countries by 2030 and by 2040 globally."
To do so, BBVA said it will progressively stop financing
companies whose coal-based activities represent more than 5% of
their revenue. It will make exceptions for companies that exceed
the 5% threshold but that apply for credits and loans to fund
low-carbon projects, BBVA said.
"We will actively help our clients in this journey, supporting
them with financing and advice in their transition to models based
on sustainable energy sources," said BBVA's Executive Chairman
Carlos Torres Vila.
BBVA also said it won't provide financing to oil producers that
derive more than 10% of their production from tar sands and that
don't have a diversification strategy. It added that it won't
finance projects associated with the exploration, production and
transport of tar sands.
However, BBVA said it could make exceptions for existing and
under-construction coal plants and companies generating coal-based
power that operate in countries with a "high level of energy
dependency or no viable alternatives."
The bank said it plans to give more details on its environmental
plans and targets for its clients in the most polluting industries
over the next few months.
BBVA added that it is on track to reach its goal of mobilizing
100 billion euros ($120.26 billion) for sustainable projects before
Write to Maitane Sardon at firstname.lastname@example.org
(END) Dow Jones Newswires
March 05, 2021 09:41 ET (14:41 GMT)
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