Barclays PLC (LSE:BARC) has increased its sustainable and transition finance target to $1 trillion by 2030 as part of efforts to accelerate the shift to a low-carbon economy.
Financing of climate and environmental solutions including green mortgages, energy efficient technology and renewable energy, as well as financing for broader social and sustainability work, including areas such as affordable housing, will all count towards the target.
The new target represents a marked increase from the bank’s previous aim of $150bn by 2025.
In a statement on its website Barclays said it will continue to invest in products to facilitate the $1trn of financing, including expanding sustainable debt financing and equity capital markets activity.
More cash for climate tech start-ups
The bank also announced a significant increase in investments into global climate tech start-ups.
The group’s Sustainable Impact Capital investment mandate will increase from £175mln by 2025, to £500mln by 2027, it said.
The next phase of sustainable impact capital investments will see an enhanced focus on decarbonisation technologies that are enabling transition within carbon intensive sectors, particularly where Barclays has meaningful client exposure such as energy and power, real estate and transport.
A particular focus will be on carbon capture and hydrogen technologies.
The bank said it had now surpassed its 2018 target to deliver £150bn of social and environmental financing by 2025 and is on track to meet its target to deliver £100bn of green finance well ahead of the 2030 target date.
CS Venkatakrishnan, group chief executive, said: "Today’s announcements reinforce our group-wide strategic priority to capture the opportunities from the transition to a low-carbon economy.”