Societe Generale was involved in 100% of offshore wind farm projects financed in Europe this year, the French multinational banking and financial services company said in its announcement that it will stop dedicated coal financing and step up its commitment to renewable energies. This decision will take effect on 1 January 2017. By doing this, the bank is consistent with the International Energy Agency’s 2DS scenario, which aims to limit global warming to 2 degrees Celsius. The bank will also scale back its outstanding loans to the coal industry, with a goal of reducing the proportion of coal-fuelled share in power production financed by the bank to 19% by 2020, in line with the International Energy Agency’s 2-degree scenario. The shift in the energy mix will also result from increased financing for renewable energies. Societe Generale is continuing to ramp up project financing in this sector. In 2015, the company announced it was doubling project financing in the renewable energy sector, with a EUR 10 billion of funding allocated to the renewable energy sector by 2020. Severin Cabannes, Deputy Chief Executive Officer of Societe Generale said: “A year after the pledges we made for COP 21, these latest decisions mark a new step forward for the bank in favour of the climate. They reflect Societe Generale’s commitment to responsible financing as a way of developing a low-carbon economy. With a long-standing and established presence in the energy sector, the bank intends to be a major financer of the energy transition and undertakes to support its clients in this necessary area.”
JP Morgan has underscored its commitment to "responsible financing" by ending dedicated coal financing and scaling back outstanding loans to the industry, effective from January 1 2017. The bank, which was involved in every offshore wind farm project financed in Europe this year, has said it will also "step up" its commitment to renewable energies. The pledges are in line with the International Energy Agency’s 2DS scenario, which aims to limit global warming to two degrees Celsius. Last year, JP Morgan doubled its funding for renewable energy to €10bn. Soc Gen is the third French bank to do cut financing for coal projects, with Credit Agricole doing the same on Wednesday. Societe Generale cut funding for individual coal projects in May, although not to the industry as a whole.