PARIS — During the One Planet Summit Tuesday, the World Bank Group announced that it “will no longer finance upstream oil and gas, after 2019.”
The upstream component of the petroleum industry finds and produces crude oil and natural gas.
World Bank said in a press release that consideration will be given to the poorest countries under exceptional circumstances, “where there is a clear benefit in terms of energy access for the poor and the project fits within the countries’ Paris Agreement commitments.”
The summit was convened by President Emmanuel Macron of France, United Nations Secretary General Antonio Guterres and World Bank Group President Jim Yong Kim.
In addition the World Bank Group announcing it would no longer fund oil and natural gas exploration, the organization made a number of new announcements at the summit that are in line with its ongoing support to developing countries for the effective implementation of the Paris Agreement’s goals, a press release from World Bank Group explained.
“As a global multilateral development institution, the World Bank Group is continuing to transform its own operations in recognition of a rapidly changing world,” the press release continued.
Upstream, which finds and produces crude oil and natural gas, is one of the three major components of the petroleum industry, along with midstream and downstream. The midstream industry processes, stores, markets and transports products such as crude oil, natural gas and natural gas liquids while the downstream industry includes oil refineries, petrochemical plants, petroleum products distributors, retail outlets and natural gas distribution companies.