Reuters. (2022, 12 October). Spain’s BBVA ups sustainable finance target 50% to 300 bln euros. https://www.reuters.com/markets/europe/spains-bbva-ups-sustainable-finance-target-50-300-bln-euros-2022-10-12/
What happened?
On October 12th, Spain’s BBVA raised its sustainable financial target from 200 billion euros to 300 billion euros for the period between 2018 and 2025. This was announced by the lender’s chairman, Carlos Torres. The aim is to decrease global carbon emissions by 30% by 2030 and also reduce the dependence on fossil fuel industries resulting from the global energy market crisis.
Whom and where it affects?
This announcement affects Spain and its oil and gas clients in its credit portfolio. Also, it has a positive effect on clean energy companies, because they will be able to borrow more money if they need and if the global carbon emissions are reduced it will also benefit the entire Spanish society providing them with clean air.
What sort of public or private institutions are involved?
The main institution involved is BBVA (Banco Bilbao Vizcaya Argentaria) as it ‘s the one leading this proposal. Moreover, all the institutions and companies that operate in the energy sector are involved in one way or another as they will have either positive or negative repercussions.
Why is it important for Banking and Finance?
Sustainable finance plays a key role in the European Green Deal. Sustainable finance is important in achieving international climate and sustainability policy goals. It directs private investment in the transition to a climate-neutral, climate-resilient, resource-efficient and equitable economy. Finance can make an important contribution to ensuring a sustainable recovery after the Covid-19 pandemic, directing investments and redirecting them towards technologies and companies with low environmental impact.
What do you think will be the consequences in the foreseeable future?
There is a need to increase attention and interest in environmental issues such as the exploitation of natural resources, pollution and the loss of biodiversity in the hope that in the future we will not have very serious consequences due to advanced climate pollution. In addition investing in sustainable long-term investments is economically reasonable and does not necessarily lead to a lower return for investors.
Keywords: BBVA, sustainable finance, clean energy, Spain.
SDG: 7. Affordable and clean energy, 12. Responsible consumption and production, and 13. Climate action