BBVA: €200Bn for ‘green’ financing to 2025
The bank BBVA is to set aside €200Bn for sustainable financing to 2025.
The amount announced is double the initial amount foreseen which had been announced in February 2018 (€100Bn).
The goal, according to the CEO of BBV Carlos Torres Vila, is to ensure that green financing reaches more people and, moreover, meets the climate challenges that the world is facing.
“Our aim is to channel €200Bn in sustainable financing (projects) to 2025, exactly twice the amount that had been our initial commitment. We want to make a contribution towards the worldwide efforts to fight climate change and promote inclusive growth that leaves no-one behind,” he said in a communiqué.
The financing of these types of ‘green’ operations by BBVA has grown at a robust pace, 44% above initial expectations.
In February 2018 the bank had announced that it would funnel €100Bn towards projects that would help fight climate change and promote inclusive growth between 2018 and 2025.
Sustainable finance is not a new idea, but is now gaining traction because of EU and UK measures aimed at reducing carbon footprints in business, industry and among the general public.
It looks to focus on finding ways to ensure capital creates positive social and environmental outcomes alongside financial return.
Banks like BBVA can work with several funds and companies to help them articulate, measure, and maximise their social and environmental impact.
On 31 March BBVA reached €59Bn in sustainable financing, more than half the initial commitment.
From 2008 until March 2021, 77% of BBVA’s sustainable financing went towards climate change projects, while 23% was aimed at inclusive growth.