Translations

DEXIA limits the impact of CO2 emissions of its portfolio of energy projects

4. Environment

Energy / Greenhouse Gases (GHG)

Sector Finance / Bank / Insurance

Year 2009

Country Belgium

Transmitter

Context

The Agence Internationale de l'Energie (Energy International Agency) (AIE) has the primary objective of ensuring security of energy supply globally, while respecting the environment. In 2007, the AIE publishes a study, World Outlook, which reported 0.6 tons of CO² per MWh for the carbon intensity (amount of CO² emitted by producing a unit of energy) of the world electricity production in 2005. The AIE recommends a stagnation of the number of particles of CO² in the atmosphere at 450 particles per million (ppm) with a maturity in 2030; thus calling a reduction by 3.5% per year of carbon intensity of the portfolio of world electricity production projects. In this context, the Dexia banking group adopts a sectoral energy policy.

Objectives

Reduce the carbon intensity of its portfolio of projects in the field of energy by 30% less than the recommendations of the AIE.

APPROACH

The Dexia sectoral energy policy is:
- Reducing greenhouse gases emissions (GHG) of electricity projects financed by the bank;
- The rejection of projects practicing gas flaring.

The bank regularly evaluates the intensity of CO² of its energy sector financing portfolio to ensure compliance with its objective. This evaluation rests on an estimate by experts (technical or environmental - consultants) of the performance of each project, considering the best available technologies. Dexia finances projects linked to:
- Nuclear power plants (under certain conditions),
- The production of electricity or heat from renewable energies,
- Thermal power plants equipped with technology to capture and store carbon,
- The modification of equipment to reduce CO² intensity of existing facilities before the end of their operation,
- Power plants (under certain conditions).

In addition, every year, Dexia controls and communicates the share of the accumulated amount of its financings of power plants that do not emit CO² during their operations and investments aiming to reduce the intensity of CO² of a facility.

This policy confirms the sectoral orientation of Dexia which devotes more than 40% of its energy financing to renewable energy, while the average French banks are only at 10%.