BNP Paribas pulling out of new fossil fuel project financing is a blow for a sector where the Paris-based financier has been a historic presence as a leading provider of capital to some of the biggest names in the business.

The French lender announced last Thursday it would no longer provide credit lines towards the development of new oil and gas fields as part of a broader strategy by the bank to wind down its exposure to hydrocarbons and align with net zero climate targets.