Joining the Science Based Targets initiative
According to the IPCC, respecting the commitment to limit global warming to 2°C calls for a 40% to 70% reduction in global greenhouse gas emissions by 2050 compared with 2010, which requires leaving the large majority of fossil fuel reserves (coal, gas, oil) in the ground. What role is the banking sector playing in this objective and how is it concerned?
Along with 167 other multinationals, Crédit Agricole has joined the Science Based Targets initiative, contributing to the energy transition by basing itself on the latest advances in climate science. In each sector, Science Based Targets partners are assessing the effort required to respect the commitment to a 2°C rise in temperature compared with the pre-industrial era. As financiers, banks play an important role in changes in the energy sector.
According to a study by the Carbon Tracker Initiative, coal generates 65% of greenhouse gas emissions from fossil fuels. Mindful of this growing risk, Crédit Agricole revised its coal engagement policy in 2015. In May 2015 the Group was one of the world's first banks to stop financing coal mine projects.
Crédit Agricole CIB has also decided to no longer finance coal power stations in high-income countries. The bank is gradually introducing new analysis criteria linked to the price of coal in credit contracts in general. These criteria will be applied first of all to sectors and countries where the carbon intensity of investments is the highest.