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Citigroup sets rare hard target to reduce energy sector emissions

By Ross Kerber

BOSTON (Reuters) -Citigroup Inc on Wednesday laid out goals to cut client emissions that included a rare “absolute reduction” target for companies in the energy sector by the end of the decade.

Citi said in a report it aims to cut the emissions financed through its energy portfolio 29% by 2030. Other banks have focused on cutting clients’ “emissions intensity,” a measure of emissions relative to output that climate activists have said does not go far enough.[L1N2T133Y]

To be sure Citi also targeted a 63% reduction in portfolio emissions intensity for clients in the power sector.

A Citi representative said while global absolute emissions must decrease soon, it chose an intensity target for power “because many aspects of the global economy will need to be electrified, so we’ll need to increase power generation while also decarbonizing it.”

The figures were part of a report Citi issued detailing how, like other banks, it aims to achieve net-zero carbon emissions associated with its financing by 2050.

As governments vow to cut planet-warming carbon emissions, attention has turned to practical questions of how banks, energy and power companies can transition to cleaner fuels without hurting global growth.

In an introduction to the report Citi Chief Executive Officer Jane Fraser said the bank aims to balance its efforts with social goals.

“We will strive to meet the current needs of developing countries without causing negative social impacts or exacerbating existing inequalities,” she wrote.

Source: /Reuters

© Reuters. FILE PHOTO: The logo for Citibank is seen on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 3, 2021. REUTERS/Andrew Kelly

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