Barclays PLC, once a major oilsands funder, says it will no longer provide financing to the industry.
The London-based bank had already set restrictions around oilsands financing that had cut its lending exposure to zero as of the end of 2022, while the policy update released Wednesday formalizes the ban that also excludes the financing of new oilsands pipelines.
The decision marks a notable shift from just a few years ago, when between 2016 and 2021 the bank provided US$4.3 billion to oilsands companies to make it the seventh-largest funder, according to the Banking on Climate Chaos report.
Canada’s TD Bank Group and RBC were by far the largest funders in that period, each providing more than US$27 billion in financing, according to the report.
Stand.earth climate finance director Richard Brooks says Barclays’ decision shows international banks are walking away from the emissions-heavy industry, even as Canadian banks continue to finance it.
HSBC said in December that it would stop funding new oil and gas fields, though the commitment didn’t extend to its Canadian division that RBC has agreed to buy.