French multinational bank BNP Paribas is planning to double its investment in the renewable energy sector from €6.9bn in 2014 to €15bn in 2020.
In a new set of policy, the bank has decided not to invest in coal mining activities or any other activities related to it.
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In order to lower carbon emission, the company has taken the decision to stop financing in coal-fired power plants located in rich countries.
In weak or poor economies, BNP will invest in such coal-fired plants only after fulfilling some criteria, set by the bank itself.
With the effort, BNP expects to help creating a carbon free economy as well as environment in Asia and sub-Saharan African region.
BNP Paribas CEO Jean-Laurent Bonnafé said: "Our decision to more than double our financing in the renewable energy sector and to reinforce our carbon risk management procedures is both an environmental and economic necessity.
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By GlobalData"It has been calculated that if we want to limit the increase in average global temperatures to 2ºC, only one third of existing fossil fuel reserves can be burnt.
"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[1], comprises 21% renewables and 40% coal."
The bank has further cited that around 1.3 billion people across the globe are still deprived of electricity.
Therefore, BNP Paribas promises to lend its support to develop the renewable energy and encourage Green Bonds to different institutional investors.
