The World Bank group has announced that it will cease to finance new upstream oil and gas exploration projects after 2019
During the One Planet Summit held in Paris, the bank group stated, “As a global multilateral development institution, the World Bank Group is continuing to transform its own operations in recognition of a rapidly changing world. To align its support to countries to meet their Paris goals: The World Bank Group will no longer finance upstream oil and gas, after 2019.”
However, the bank will consider financing upstream gas in poor countries around the world, in order to benefit the poor people in having energy access through the projects within the countries' Paris Agreement commitments.
According to the Paris Agreement at end of 2015, the leaders across the world committed to ensure the level of global warming below two degrees Celsius above pre-industrial levels. The agreement was also aimed at continuing efforts to limit the temperature rise to 1.5 degrees Celsius.
The World Bank group said that it’s decision to cease the financing in new upstreaqm projects is expected to provide numerous environmental benefits to transitioning away from fossil fuel dependency.
In addition to its decision on upstream oil and gas, the World Bank group said that it would report the greenhouse gas emissions arising from investment projects it finances in major emissions-producing sectors from 2018.
Apart form the World Bank, in November 2017, Norway announced that it will escalate its commitment to fossil fuel divestment, stressing that the country considers oil and gas as unsustainable resource to energy.
