Paris, 23 May 2024 – Will Crédit Agricole commit to stop providing non-earmarked finance to fossil fuel developers? This is the question being asked after the French bank’s annual general meeting, where it indicated that it would no longer participate in issuing bonds that do not comply with its Green Bond Framework (1). While this commitment would be a welcome step forward in the fight against fossil fuel expansion, doubts persist as to the reality and scope of this measure. Reclaim Finance is calling on Crédit Agricole to clarify its position on non-fossil fuel bonds by formally enshrining this commitment in its climate policy, and to extend it to all financial services, including general loans to fossil fuel developers.
At Crédit Agricole’s AGM on Wednesday 22 May, the director general, Philippe Brassac, said: “We no longer participate in [bond] issues that are not clearly green, or at least that do not correspond to our green framework”. The bank also stated In answers to written questions: ‘With regard to energy companies (…) we no longer participate in untargeted bond issues that do not comply with our green bond framework” (2). These statements are in line with those made by BNP Paribas last week, which announced that it was refraining from participating in bonds issued by the oil and gas sector.
While Crédit Agricole has steered clear of bonds issued by TotalEnergies and BP over the past three months, it did take part in a transaction in January 2024 for Italy’s Eni (EUR 1 billion) (3).
By stating that it will no longer participate in bonds that are not ‘clearly green’, Crédit Agricole is explicitly acknowledging the problem of untargeted financing for oil and gas companies. This statement, in the vein of the one made by BNP Paribas last week, could be the sign of a real change in the Paris financial center, known for its strong support for oil and gas expansion. But we must be cautious, and there is every reason to doubt this statement, given that the bank participated in Eni’s bond issue in January (4). We therefore call on Crédit Agricole to clarify its position by including it in its climate policy. Aligning with a 1.5 trajectory will also require this position to be extended to loans to oil and gas developers.
Lucie Pinson, director of Reclaim Finance
If this commitment is confirmed, Crédit Agricole would move ahead of Banque Populaire – Caisse d’Epargne (BPCE group) and Société Générale, which confirmed on Wednesday that it would not make any new commitments on the issue of general financing to oil and gas companies at its AGM.
Reclaim Finance is calling on Crédit Agricole to clarify its climate strategy by formally enshrining their commitment to no longer participate in ‘non-earmarked’ bond issues by the oil and gas sector in their policy. The French bank must also end loans to developers of new oil and gas projects in order to fully cease support for fossil fuel expansion.
