Several oil and gas projects will no longer receive financing from Britain’s Royal Bank of Scotland (RBS), Reuters reported. The bank said it won’t offer project-specific finance for Arctic oil and oil sands projects, new coal-fired power stations, new thermal coal mines, or unsustainable peatland or vegetation clearance projects. RBS Director of Sustainable Banking Kirsty Britz said, “The RBS of 2018 is very different to the bank we were a few years ago. If we’re going to support our customers in the long run, then it means addressing the challenge of climate change and the risks and opportunities it presents.”
The changes are part of RBS’s tighter restrictions on finance and general lending for what Reuters described as “high-carbon energy projects.” In addition to the projects listed above, RBS said it won’t provide finance for “mining companies generating more than 40 percent of their revenues from thermal coal” and “power companies generating more than 40 percent of their electricity from coal.” In the past, the threshold for both types of companies was 65 percent.
Related: The World Bank will stop funding oil and gas projects after 2019
RBS quoted Sonia Hierzig of ShareAction, a responsible investment charity, as saying the energy financing policies “make RBS the bank with the strongest energy sector policies out of the top five UK banks…RBS would now rank 8th in our climate ranking of the 15 largest European banks, up from 11th previously.”
The bank said they’ve funded “more British renewable energy projects than any other UK bank for the last six years running.” They also said they obtain 90 percent of electricity in the UK and Ireland via renewable energy and, since 2014, have seen a 39 percent drop in their carbon dioxide emissions.
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