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Energy transition

The energy sector is at the forefront of the net zero transition. The supply of energy is central to our society and plays a critical role in providing the UK with energy security and in enabling other sectors to decarbonise.

Transitioning our energy system will depend on a range of factors. We need to make sure the UK has sufficient renewable energy and network capacity, while reducing the extraction and use of fossil fuels over time.

We continue to play a leading role in financing the decarbonisation of the power sector this decade, including financing solar, carbon capture, onshore and offshore wind and other low carbon technologies. We're also the lead financier for the National Grid.

We will continue to prioritise renewable energy alternatives over traditional, carbon intensive methods of energy production.

Our actions

 

 

In 2022, we became the first major UK bank to halt direct financing (either via project finance, or reserve-based lending) of new greenfield oil and gas developments. 

 

In 2023, we achieved a full exit from UK thermal coal power and we no longer provide any direct lending to clients that operate UK coalfired power stations. As part of our Powering Past Coal Alliance (PPCA) commitments, we aim to exit any remaining clients that operate thermal coal facilities outside the UK by 2030.

We have engaged with key energy clients on their transitions to net zero and expect our clients’ carbon reduction goals to align with scenarios that limit global warming to no more than 1.5°C. We will require clients in the power sector to demonstrate they are transitioning to net zero and we won’t provide new lending or renewal of limits to clients who can’t evidence this by the end of 2025.

We have deep internal expertise and are a market leader in structuring finance for renewable and clean energy projects. We are a lead supporter of several landmark renewables projects in the UK, including Dogger Bank and Hornsea 2. 

We support the Net Zero Technologies upskilling programme in partnership with the University of Edinburgh. This programme is designed to bring the latest thinking on key transition technologies and support the banking of new, emerging and maturing technologies.

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