Monday

4th Dec 2023

French bank BNP Paribas sued over fossil-fuel lending

  • BNP Paribas is France’s biggest fossil-fuel lender, and one of the biggest in Europe behind only Deutsche Bank (Photo: Can Pac Swire, Flickr)
Listen to article

Three organisations are suing the Eurozone's biggest bank, BNP Paribas, over oil and gas financing — in what is the first case of a commercial bank being sued over its fossil-fuel lending.

Climate organisations Oxfam, Friends of the Earth and Notre Affaire à Tous said in a statement on Thursday (23 February) that the bank has a duty to prevent environmental harm.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

"BNP Paribas continues to write new blank cheques to the largest fossil-fuel companies without setting any conditions for an oil-free, gas-free ecological transition," said Alexandre Poidatz, advocacy officer at Oxfam France, citing a French law that obliges French companies to identify risk and prevent severe environmental and human-rights violations.

So far, no French court has convicted a company based on that 2017 law. But a ruling in a similar case against TotalEnergies, also a client of BNP's, is expected next week.

François de Cambiaire, a partner at Paris-based Seattle Avocats, an environmental law firm, said a successful lawsuit could result in "cessation of the activity causing the damage, and even divestment."

BNP Paribas is France's biggest fossil-fuel lender and one of the biggest in Europe, trailing only Deutsche Bank. According to a 2022 study by the climate group Rainforest Action Network, BNP is the world's leading funder of Arctic and offshore gas projects in the six years between 2016 and 2021, with financing worth respectively $6bn and $36bn [€5.5bn and €34bn].

In a statement, BNP said it regretted the litigation and could not end all fossil-fuel financing immediately.

In January, the bank committed to reducing its outstanding financing by 2030, but NGOs claim it is still lending money to clients developing new fossil-fuel projects.

The bank is a member of the Glasgow Financial Alliance for Net Zero (GFANZ), a global coalition of leading financial institutions committed to increasing investments in solar, wind and gas substitutes to 80 percent of all energy investments by 2030. BNP Paribas so far has managed only seven percent.

This lawsuit is part of a global litigation movement that aims to hold the banks accountable and is based on similar cases against Shell, which was forced to reduce greenhouse gas emissions by a Dutch court in 2021.

The Paris Judicial Court will propose a schedule for the next steps in the proceedings.

MEPs tighten deforestation rules, covering banks

MEPs in the environment committee have backed a wider scope and stricter rules to reduce global deforestation driven by the European consumption of certain commodities — pushing for more ambition in a key EU climate law.

Analysis

What are the big money debates at COP28 UN climate summit?

The most critical UN climate conference (COP28) ever will run from Thursday to mid-December — with talks on climate commitments and climate finance expected to determine the success of this year's summit.

Opinion

Dubai's COP28 — a view from the ground

Discussion of the biggest existential threat humanity has ever faced is barely mentioned on billboards or signage in Dubai — yet visitors are made aware quite quickly that t world rugby sevens tournament is imminent.

Latest News

  1. Israel's EU ambassador: 'No clean way to do this operation'
  2. Brussels denies having no 'concern' on Spain's amnesty law
  3. Dubai's COP28 — a view from the ground
  4. Germany moves to criminalise NGO search-and-rescue missions
  5. Israel recalls ambassador to Spain in new diplomatic spat
  6. Migrant return bill 'obstructed' as EU states mull new position
  7. Paris and Berlin key to including rape in gender-violence directive
  8. What are the big money debates at COP28 UN climate summit?

Stakeholders' Highlights

  1. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  2. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  3. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  4. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?
  5. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  6. UNOPSFostering health system resilience in fragile and conflict-affected countries

Join EUobserver

Support quality EU news

Join us