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NatWest Group has launched a revised Climate and Transition Finance (CTF) Framework, committing £200 billion ($268 billion) in climate-related financing between July 2025 and December 2030. The initiative marks a significant expansion of the bank’s sustainability strategy, targeting both low-carbon solutions and high-emission sectors critical to global decarbonisation.
🌍 Strategic Highlights
- Doubling of Climate Finance Target: NatWest surpassed its previous £100 billion goal ahead of schedule, reaching £110 billion by Q2 2025, prompting the new £200 billion commitment.
- Expanded Sector Coverage: The CTF Framework includes financing for iron and steel, cement, aviation, nuclear energy, and gas with carbon capture and storage, reflecting a broader approach to supporting hard-to-abate industries.
- Framework Evolution: The CTF replaces the former Climate and Sustainable Funding and Financing (CSFF) programme, removing social financing to focus exclusively on climate and transition priorities.
🔍 Oversight and Integrity
- The framework has undergone independent review by DNV Business Assurance Services UK Limited, ensuring alignment with science-based net-zero pathways.
- NatWest emphasized that the definition of “transition” will remain dynamic, adapting to emerging low-carbon technologies and regulatory standards.
🏦 Institutional Commitment
CEO Paul Thwaite reaffirmed NatWest’s dedication to the Net Zero Banking Alliance, stating the bank remains fully aligned with its 2050 net-zero ambition. The strategy aims to support real-economy transformation in line with the Paris Agreement and UK climate legislation.
This announcement follows NatWest’s recent proposal to float a $10 billion bond aimed at halting deforestation in the Amazon, further underscoring its global climate engagement.
Source: esgnews.com
