What went right this week: a bank’s (timely) retreat from big oil, plus more

Lloyds pledged not to fund fossil fuel projects

In a move made timely by political events in the UK, Lloyds Banking Group announced on Thursday that it would stop funding new oil and gas projects – the first major UK bank to do so. 

In its updated policy, Lloyds said: “We will not provide financing to new clients in the oil and gas sector unless it is for viable projects into renewable energies and transition technologies, and clients have credible transition plans.”

This development was made possible by a passionate vote on fracking that overthrew the UK government which had been trying expansion fossil fuel projects.

Share Action, a responsible investment charity, was one of those who welcomed the move by Lloy but said that more must be done.

“Lloyds has set a new standard for the UK banking industry by committing to stop directly financing new oil and gas fields,” the charity’s Jeanne Martin told Positive News. “We commend the bank for doing so and urge major UK banks such as Barclays and HSBC to swiftly follow suit.

“However, asset-level financing is only a fraction of the financing provided by banks to new oil and gas. Lloyds should not rest on its laurels, but instead urgently turn its focus to the companies behind these new oil and gas fields.” 

Image: Arvind Vallabh