Two prominent UK high street banks stand accused of continuing to finance the expansion of fossil fuels in the North Sea despite having pledged to align their operations with the net zero climate target.
HSBC and NatWest have reportedly extended tens of millions in financing to Ithaca Energy, a British oil and gas company heavily involved in the controversial Rosebank oilfield project northwest of the Shetland Islands. While Lloyds provided financing initially, it has since reduced its debt exposure.
A coalition comprising over 80 organizations, including Global Witness, Greenpeace, and the Rainforest Action Network, has penned letters to the banks’ chief executives, urging them to halt funding to Ithaca and sever ties with the company.
Also read: Barclays to stop financing oil & gas industry
The UK government sanctioned the exploitation of Rosebank in September of the previous year. This untapped field, estimated to hold the equivalent of 500 million barrels of oil, could emit 200 million tonnes of CO2 if fully burned.
Ithaca Energy, already a stakeholder in six of the North Sea’s top 10 producing fields, is funnelling billions into Rosebank’s development, aiming to commence production by 2026, according to industry reports. Critics label it a “pure play” fossil fuel company with no publicly disclosed intentions to diversify into renewable energy ventures.
Despite being members of the Net Zero Banking Alliance, mandating alignment of lending and investment emissions with net-zero targets by 2050 or earlier, and despite public pledges to cease direct financing of new oil and gas endeavors, HSBC, Lloyds, and NatWest find themselves embroiled in these allegations.
