Remember meForgot password?
    Log in with Twitter

article imageOver 100 global financial institutions restricting coal funding

By Karen Graham     Feb 28, 2019 in Business
One-hundred global financial institutions have introduced policies restricting coal funding, according to a new report. Coal companies are finding it harder to access capital markets for expansion, but China still lags.
The U.K.-based Institute for Energy Economics and Financial Analysis (IEEFA) notes in their report, “Over 100 Global Financial Institutions Are Exiting Coal, With More to Come,” that global capital is fleeing the coal sector at an electrifying rate.
The 100 global financial companies that have cut back on coal funding include 40 percent of the top 40 global banks and at least 20 globally significant insurers, with over $6 trillion (€5.4 trillion) of investments under management, or about 20 percent of the coal industry’s global assets, the new report says.
According to Investor Daily, since 2013, banks and insurers holding more than US$10 billion worth of assets under management have been exiting coal at the rate of one per month. Since 2018, the rate of coal exits has risen to one new announcement every two weeks.
In 2013, The World Bank issued the first restriction on coal funding, while the 100th coming from the European Bank of Reconstruction and Development. Today, the current list of financial institutions restricting coal funding includes banks in the UK, Canada, Finland, South Africa, and Austria.
Coal accounts for almost half of global energy-related CO2 emissions. Only four countries, the US, Australia, China, and Poland have dragged their feet on agreeing to reduce coal production.
Tim Buckley, director of Energy Finance Studies, IEEFA, said: “For environmental, reputational and financial reasons, thermal coal is a toxic asset for global investors increasingly announcing new and improved policies responding to climate change. The strong leadership of a few globally significant institutions five years ago is increasingly turning into capital flight by the many, with one new announcement every two weeks in recent years."
More about coal funding, Financial institutions, Worldwide, capital markets, CO2 Emissions
Latest News
Top News