French multinational bank BNP Paribas is to double its investment in the renewable energy sector from €6.9bn in 2014 to €15bn by 2020, in a bid to cut CO2 emissions.
The bank also said that it will stop funding coal mining activities through direct financing of mining projects or by financing mining companies specializing in coal extraction unless they implement energy diversification strategy.
It will provide financing to only those power generation companies that will commit to reduce the share of coal in their power generation mix that is at least as ambitious as that of their host country to limit greenhouse gases emissions.
BNP Paribas CEO Jean-Laurent Bonnafé said: "The electricity mix currently financed by the BNP Paribas Group, with 23% renewables that is, hydroelectric power, photovoltaic and wind power — and 23% coal-fired power, is already more advanced than the global average mix which, according to the IEA, comprises 21% renewables and 40% coal."
BNP Paribas is also strengthening its carbon risk management policies in a bid to restrict global warming to a 2ºC increase over pre-industrial levels.
The bank will further expand the offers already available to individual customers for making home energy efficiency improvements, both through loan plans and through partnerships with equipment suppliers and installation providers.
BNP Paribas will also extend its support to companies that aim at reducing energy consumption in their business operations.
It will also €100m by 2020 in start-ups that are working on energy storage and smart grid solutions.
Image: BNP Paribas is committed to more than double its financing in the renewable energy sector. Photo: courtesy of seaskylab / FreeDigitalPhotos.net.