The banking sector will turn green. UBS tightens criteria for financing dirty projects

swiss franc, Switzerland

Swiss money institute UBS has subscribed to a new trend that has also penetrated the world of finance. It will lend money to finance environmentally friendly projects under worse conditions.

Stricter funding criteria will apply to companies involved in the production of electricity from coal, its extraction, oil extraction in the Arctic or the oil sands, and so on. Swiss bank UBS has sided with other banks that have signed a United Nations global initiative to accelerate the decarbonization of the global economy.

The bank will only lend to firms that rely less than 20 percent on coal, or if they have a strategy to meet the conclusions of the 2015 Paris climate agreement, or if they plan to invest in renewable energy sources or clean technologies.

UBS also said it will present a more detailed description of its other plans to green its operations later this year. The aim of the bank house is to make a significant contribution to achieving carbon neutrality. The bank also claims to respond to the demand of its clients who want to behave in an environmentally responsible way.


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