Setting targets for corporate loans: electricity generation when all loans are for renewable electricity projects

Hi, I would like to understand the approach that a bank would need to take regarding setting targets for the electricity generation projects it finances, specifically when all these loans are for projects generating renewable electricity solely. Do they need to set a target at all? Is it good enough that they produce evidence showing that there are no emissions associated with the projects they finance? (note this is for a relatively small number of loans <80).
Thanks,
Caoilinn

In this case, a maintenance target can be set to effectively maintain fiancing for only renewable electricity. Hence instead of reducing the intensity by x% CO2 per MWh, the target would commit the FI to continue financing 100% renewable energy

Thanks Eoin - that is much appreciated. I see that this type of maintenance target is acceptable for Bank’s operational Scope 2 targets as per FI-C14 of the criteria, and so if I’m picking you up correctly this maintenance target can be applied to the Scope 3 financial product - electricity generation products too. I can’t see this guidance in the SBTi criteria and Financial sector guidance documents but it seems to be a robust approach to me.

Thanks,
Caoilinn

Hi Caoilinn, exactly the same approach can be applied to both scope 2 and scope 3 electricity project finance. This isnt specifically mentioned in our guidance as of yet, but we expect to integrate this into the next version.

brilliant thanks Eoin!