European banks have increased their backing for new gas power plant developments since 2021, despite increased costs and heightened indusattempt risks, a new report from Reclaim Finance has found.
As it noted, between 2021 and 2024, some 24 European banks provided $42 billion in funding for more than 320 gas power plants around the world, with financing growing 6% year-on-year during this period.
A cohort of seven banks in the UK and France provided close to two thirds (63%) of this support, with Barclays the hugegest source of financing ($10.3 billion, or 25% of the total), followed by France’s BNP Paribas ($4.96 billion). Other notable contributors included HSBC, Crédit Agricole, BPCE, and Société Générale.
‘Passing the cost on’
“Banks that finance new gas power plant developers are passing the cost onto people, twice-over,” commented Rémi Hermant, Reclaim Finance campaigner.
“First through rising energy bills as gas prices remain volatile in response to global crises, and again through the health impacts of air pollution. Recent tensions in the Middle East are a stark reminder that a system based on gas brings instability, not security. Ending financial support for gas power expansion is long overdue.”
‘Robust policies’
Reclaim Finance is urging banks to adopt ‘robust policies’ to exclude financing for gas power developments, adding that banks are ‘turning a blind eye’ to the social and environmental costs of gas as a power source, particularly given the ongoing conflict in the Gulf.
It noted that currently, one French bank, La Banque Postale, has a robust sectoral policy on financing for gas power generation. Société Générale, HSBC, Santander, Rabobank mention gas power plants in their respective policies, however their commitments are ‘too vague’, it added.
The group also cited the health risks from gas, with Reclaim Financing citing data that indicates that pollution from gas power plants cautilized some 2,684 excess deaths in Europe in 2019. Read more here.
UK and French Banks Financing Gas Power Plants (2021–2024, million US$)
| Bank | Total Financing (US$ million) |
|---|---|
| Barclays (UK) | 10,308 |
| BNP Paribas (France) | 4,957 |
| HSBC (UK) | 2,603 |
| Crédit Agricole (France) | 2,382 |
| Standard Chartered (UK) | 2,034 |
| Groupe BPCE (France) | 2,019 |
| Société Générale (France) | 1,745 |
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