Goldman curbs lending on new Arctic drilling

Kay Cashman

Petroleum News

Goldman Sachs is no longer financing new Arctic drilling, the big U.S. investment bank said Dec. 15 in its updated Environmental Policy Framework.

While it stressed protecting the Arctic National Wildlife Refuge’s coastal plain, the framework said the bank’s new policy “includes but is not limited to” ANWR.

Goldman’s policy change came as climate talks in Madrid ended, with delegates from almost 200 countries tempering language on climate change issues they had agreed on in previous years. According to news reports the delegates agreed there was an “urgent need” for nations to make deeper cuts to greenhouse gases, but they set aside work that would have devised ways to add market mechanisms to meet their goals.

CEO David Solomon praised the bank’s decision in an opinion piece in the Financial Times, writing that “over the next 10 years, Goldman Sachs will target $750 billion of financing, investing and advisory activity to nine areas that focus on climate transition and inclusive growth,” including clean energy and transportation, sustainable food and agriculture, and education.

Goldman’s new policy also included refusing to finance new coal-fired power plants in developing nations. The bank had previously only done this in the U.S. and developed countries, unless the borrowers had carbon capture and storage or comparable technology

Gov. Mike Dunleavy said the state of Alaska needs to reassess its relationship with Goldman Sachs in light of the bank’s new policy on not financing new Arctic drilling.

“I think it’s unfortunate,” Dunleavy said in an interview on FOX Business’ Varney & Co. “We do a lot of business with Goldman Sachs. We’re going have to reevaluate that, have a discussion with them.”

- KAY CASHMAN