Environmental impact has divided lenders into those willing to lend to oil and gas, and those that are not. This split is also emerging in critical minerals financing. But the energy transition will need both hydrocarbons and minerals. While there are signs of progress for oil and gas businesses, mining companies are still struggling to secure funding despite their crucial role.
“We’ve seen swathes of international banks leave the sector,” Adam Blythe was quoted by E-FWD as saying during Bracewell’s recent media briefing. “Those that remain are more committed and more willing to finance.”
“There’s a rebound in interest in oil and gas, particularly gas for power generation,” said Bracewell’s François Feuillat during the same briefing.
As a counterpoint, Bracewell’s Ro Lazarovitch added that while miners are making efforts to align with global climate goals and reduce emissions, “there’s still a question around exactly how all of this is going to be funded in the medium and long term.”
