British banking major NatWest Group (LON: NWG, NYSE: NWG) has unveiled a bold new strategy to deliver $267 billion (£200 billion) in climate and transition finance by 2030, doubling its previous target.
This comes after the Edinburgh-based bank exceeded its earlier $133 billion (£100 billion) goal ahead of schedule, reaching $146 billion (£110 billion) by Q2 2025.
The updated strategy includes a new Climate and Transition Finance (CTF) Framework, which replaces the bank’s former Climate and Sustainable Funding and Financing (CSFF) program.
The CTF Framework broadens the scope of financing to include high-emission, hard-to-abate sectors like iron, steel, cement, and aviation, alongside support for nuclear energy and gas with carbon capture and storage (CCS).
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“Supporting the real economy… will require vast investment,” NatWest said on its website, underscoring the importance of aiding both clean-tech innovators and carbon-intensive industries as they transition.
In a strategic shift, social financing has been removed from the updated framework, signaling a sharper focus on decarbonization and net-zero goals.
CEO Paul Thwaite reaffirmed the bank’s commitment to the Net Zero Banking Alliance, aiming to align with science-based targets.
James Close, Head of Climate Change at NatWest, highlighted on LinkedIn that the bank had already surpassed its initial climate finance goal, noting the importance of momentum in achieving longer-term targets.
The new framework has received a second-party opinion from DNV Business Assurance Services UK Limited, ensuring it meets standards aligned with credible net-zero pathways.
NatWest also acknowledged that the definition of “transition” is fluid and will evolve as new low-carbon technologies emerge.
With this expanded approach, NatWest positions itself as a key player in mobilizing capital for the climate transition, particularly in sectors often overlooked in sustainable finance.
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