Banco Santander world leader in renewable energy financing

The group closed the first half as the world leader in the financing of renewable energy projects, with more than 2,400 million euros in 33 transactions, and a market share of 6.4%.

These are the data provided by the classification of Infralogicaland it is that Banco Santander continues to make progress in achieving its objectives related to the fight against climate change and support for the green transition, to achieve zero net carbon emissions across the entire group by 2050, in accordance with the objectives of the Paris Agreement.

Over the past decade, Santander has been one of the reference banks in the financing of renewable energiesbeing one of the three largest in the world by number of transactions and one of the five by financing volume.

New renewable projects (virgin land) financed in 2021 represented an installed capacity of 13,604 megawatts and will avoid the emission of 251 million tonnes of CO2. These projects have an electricity production capacity equivalent to the annual consumption of 9.2 million households. While existing renewable energy expansion projects (industrial wasteland) translates to a capacity of 1,776 megawatts.

New objectives of the entity

Banco Santander announced in the new edition of the Climate finance report three new decarbonization goals by 2030 as a 29% reduction in financed emissions in the energy sector; 33% reduction in emissions in the aviation sector and 32% in the steel sector.

These new intermediate objectives are in addition to those that the group communicated in February 2021, when it announced that it would cease financing in 2030 electricity production customers who are more than 10% dependent on thermal coal. In addition, the group has made public its 46% reduction target for funded emissions in the power generation sector.

As established Net Zero Banking Alliance (NZBA), the alliance promoted by the United Nations Environment Program Finance Initiative (UNEPFI), of which the group is a founding member, Santander will communicate its intermediate decarbonization targets for the rest of its portfolios before March 2024: real estate, car manufacturing, cement or agriculture.

To achieve these goals, Santander has set up a Global Green Finance Team to advance in the creation and distribution of products that facilitate the green transition, the promotion of green mortgages, the energy rehabilitation of homes, the financing of electric vehicles and non-polluting agricultural machinery, among others.

Santander maintains its commitment to allocate 220,000 million euros to green financing between 2019 and 2030, and has also set an intermediate target of 120,000 million for 2025. Of this amount, the group’s investment banking division had already mobilized 74,400 million euros by June 2022.

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