European banks risk jeopardizing the achievement of zero carbon emissions goals as well as those regarding the growth of renewable energies if they do not stop financing new oil and gas fields this year, said a group of investors which manage assets worth of over 1,500 billion dollars, informs Reuters.

ShareAction revealed that it made this request in letters sent to the directors of Barclays, BNP Paribas, Credit Agricole, Deutsche Bank and Societe Generale. The group that coordinated the action added that among the investors which joined the initiative are Aegon Asset Management, La Francaise Asset Management and the Local Government Pension Scheme (Great Britain).

ShareAction estimated that the five banks it contacted, plus the British HSBC group, represent the largest European financiers of the main oil and gas companies that increased their production between 2016 and 2021, according to Agerpres.

However, British bank HSBC announced in December 2022 that it will stop directly financing new oil and gas fields, joining other banks that have decided to restrict financing, ShareAction said.

“Investors are putting these banks on notice that they will face increasing pressure if they don’t act soon to reverse the financing of new oil and gas fields,” said ShareAction coordinator Jeanne Martin.

In response, a Barclays spokesman said the bank believes it can make a significant difference by working with customers in their transition to a low-carbon economy. “This includes many oil and gas companies that have actively engaged in the transition,” the spokesperson said.

French banking group BNP Paribas sent an email saying that last month it announced new targets for “accelerating the transition to a low-carbon economy”, including ending funding for new oil and gas exploration and production projects and reducing the bank’s exposure to natural gas.

For its part, Credit Agricole announced that it has already stopped financing new projects in the field of oil extraction and that it plans to reach climate neutrality by 2050.

Societe Generale declined to comment but a spokesman said the French bank would review the letter after executives received a copy. The spokesperson mentioned that the French bank has its own targets for reducing exposure to the oil and gas production sector by 2025.

Deutsche Bank said it has “significantly reduced” its commitment to carbon-intensive sectors since 2016 and has set targets for funded emission reductions through 2030 and 2050. “We are focused on supporting our clients in transforming towards carbon neutrality,” said Germany’s largest bank in a statement.

Even though the banks say they have tightened the conditions for fossil fuel financing, in line with promises to reduce financing to reach zero emissions by 2050, environmental groups say the banks are doing too little and their actions are coming too late.

In 2021, the International Energy Agency estimated that investments in new projects in the oil, natural gas and coal sectors must be stopped in order to reach zero emissions by 2050.