HSBC to end funding for new oil and gas fields

HSBC has announced it volition halt financing caller lipid and state fields, arsenic portion of its efforts to thrust down planetary greenhouse state emissions.

Environment groups said the determination sends "a beardown signal" to fossil substance giants that concern is waning.

Europe's largest slope said it made the determination aft receiving proposal from planetary vigor experts.

It comes pursuing erstwhile disapproval of HSBC for backing lipid and state projects contempt its greenish pledges.

Jeanne Martin, caput of the banking programme astatine ShareAction, a foundation that campaigns for reducing concern for fossil fuels similar lipid and gas, said: "HSBC's announcement sends a beardown awesome to fossil substance giants and governments that banks' appetite for financing caller lipid and state fields is diminishing."

The foundation called connected different banks to travel suit - saying this determination sets a "a caller minimum level of ambition" for the sector.

In 2020, HSBC made a pledge to beryllium "net zero" - which means not adding to greenhouse gases already successful the ambiance - and investing up to $1 trillion (£806bn) successful cleanable energy.

However, the slope came nether disapproval earlier this twelvemonth erstwhile it was revealed it had invested an estimated $8.7bn (£6.4bn) into caller lipid and state successful 2021, according to ShareAction.

In the update to its vigor policy, the slope said the determination had been made "follow[ing] consultation with starring technological and planetary bodies" who had estimated that existent lipid and state fields would conscionable immoderate request successful 2050 nether a "net-zero" scenario.

Under the 2015 Paris Agreement, 197 countries agreed to effort to support somesthesia rises "well below" 1.5C to debar the worst impacts of clime change.

Tony Burdon, main enforcement astatine clime concern run Make My Money Matter, said: "it's different nail successful the coffin for fossil substance expansion, and a monolithic awesome to different UK banks that the crippled is up connected caller lipid and gas."

It is not yet wide if this is the opening of a inclination crossed the sector, but it comes conscionable months aft the UK authorities announced a caller circular of licensing for lipid and state accumulation successful the North Sea.

HSBC has said it volition proceed to support its investments already successful lipid and state fields arsenic it "recognises that fossil fuels, particularly earthy gas, person a relation to play successful the transition, adjacent though that relation volition proceed to diminish".