With Barclays Announcement, Yet Another Major Bank Rejects Arctic Refuge Drilling

This morning, multinational investment bank Barclays announced a new energy policy that significantly restricts the bank’s financing for the exploration or extraction of oil and gas in the Arctic.

Although the policy fails to apply adequate restrictions to coal and tar sands funding, it all but rules out funding for companies seeking to drill in the Arctic Refuge. It states that “any client conducting new exploration of or extraction of Arctic oil and gas will be subject to EDD,” or Enhanced Due Diligence, and the bank “will conduct EDD on any financing transaction directly connected with the exploration or extraction of oil or gas in the Arctic.” Critically, the policy notes that “under the EDD framework, we would not expect such project finance proposals to meet our criteria.”

The announcement from Barclays is the latest in a series of major financial institutions rejecting drilling in the Arctic. Some of the world’s largest banks have made similar commitments, including HSBC, BNP Paribas, Royal Bank of Scotland, Societe Generale, and others. Last spring, some of the world’s most significant institutional investors also raised concerns about the economic risks associated with Arctic Refuge drilling and urged companies and financial institutions not to invest there.

In recent months, leaders from the Gwich’in Steering Committee and the Sierra Club have met with representatives from Barclays to discuss the threats fossil fuel operations pose to the Arctic Refuge and why action by the financial industry is necessary.

“Major financial institutions are beginning to stand with the overwhelming majority of Americans and doing what the Trump administration refuses to do: protect the Arctic Refuge. Drilling in the Refuge would be disaster for wildlife, the climate, and the human rights of the Gwich’in Nation,” said Lena Moffitt, Senior Director of the Sierra Club’s Our Wild America campaign. “Today’s announcement is further proof that drilling in the Arctic Refuge would be a bad bet for any company foolish enough to pursue it.”

“Drilling in the Arctic Refuge would permanently destroy the primary food source of the Gwich’in people, our culture, and our way of life,” said Bernadette Demientieff, Executive Director of the Gwich’in Steering Committee. “The Trump administration may have made up their minds about selling off this sacred place, but the fight is far from over. We’re glad to see Barclays recognize that the Arctic Refuge is no place for drilling and we hope that other banks, and the oil companies they fund, will follow their lead.”