Barclays is under fire from environmental groups for its involvement in arranging €4 billion ($4.4 billion) in financing for Italian oil company Eni, with accusations of greenwashing amid concerns over sustainability goals and fossil fuel expansion plans, as reported by The Guardian.
The bank's role in facilitating Eni's financial activities, including a sustainability-linked bond (SLB) and revolving sustainability-linked loan (SLL), has drawn scrutiny for potential contradictions with global climate objectives.
Behind Eni's New Venture
The Italian oil company is on a multibillion-pound fossil fuel expansion drive, intending to increase its oil and gas production over the next few years. Eni announced plans to boost its oil and gas production spending by at least a third, investing between €24 billion and €26 billion ($26.4 billion to $28.6 billion) over four years.
This expansion initiative includes projects such as the development of the Verus gas field, which has raised concerns due to its potential to emit 7.5 million tonnes of carbon dioxide annually, described by some as a "carbon bomb."
An investigative report by Point Source has particularly underlined these financing deals, raising questions about their alignment with emission reduction targets and broader sustainability initiatives.
While there have been claims of sustainability and carbon neutrality objectives, Eni's production targets for 2030 are projected to exceed those required to align with the International Energy Agency's net zero emissions by 2050 scenario by 35%.
Environmental advocates argue that such expansion plans contradict efforts to combat climate change and transition to renewable energy sources.
Despite mounting criticism, Barclays and Eni have refrained from commenting on the issue.
Join the Conversation