Turkish bank Garanti BBVA to stop financing coal projects

Turkey’s fifth-largest bank has only supported renewables since 2014, but is now committed to cleaning up the loan portfolio of the remaining coal mines and power plants by 2040. Spain’s BBVA, the largest shareholder of Garanti BBVA, made a similar commitment earlier this month.

Guaranteed BBVA has declared its intention to encourage sustainable investments and reaffirmed its commitment to climate action by announcing that it will stop funding coal-related activities. Turkey’s fifth-largest bank has actually only supported renewable energy since 2014.

However, there are still active loans in his portfolio for coal-fired power plants and mines. Lender said it would reduce exposure to zero by 2040 and added that it would comply with the recommendations of the Intergovernmental Panel on Climate Change (IPCC). It is the first bank in Turkey to make such a commitment.

Act for the climate

“Climate change is the most important global crisis facing the world from an economic and social perspective. That is why we are urging the business community and stakeholders to act, ”said CEO Recep Baştuğ.

Turkish lender relies on renewable energies in project financing

Guaranteed BBVA goes help customers operating in the coal sector to shift their investments to greener environments and thereby accelerate the just transition to low-emission energy in Turkey, he said.

The bank claims to have a 25% share in the financing of national wind power plants and that renewable energies represent 73% of its project finance portfolio.

BBVA will also not have room for coal from 2040

The lender is part of the Banco Bilbao Vizcaya Argentaria or BBVA network. The multinational financial services company owns almost 50% of the Turkish franchise. Guaranteed BBVA is also active in Romania and the Netherlands.

Earlier this month, BBVA said that by 2030 it will stop funding customers in developed countries with a share of coal-related revenue above 5% and will apply the same rule in 2040 for the rest of the world. . He pledged in 2018 to align his loan portfolio with the goals of the Paris Agreement.

The Spanish bank said that since December it no longer does business with clients with a share of oil sands production above 10% and has not developed a diversification strategy. BBVA was the first financial entity in its home country to issue a green bond.

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