Institutional Coal Finance Restrictions

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As of February 2019, at least 100 institutions had announced restrictions on financing coal mining or power.[1] These include:

  • Multinational Development Banks (MBDs) - 5
  • Export Credit Agencies (ECAs) - 36
  • Sovereign Wealth Funds - 1
  • National Development Agencies and Banks - 8
  • Banks (mining and plants) - 24
  • Banks (plants only) - 6
  • Banks (mining only) - 10
  • Insurers - 13
  • Reinsurance companies - 4

Multinational Development Banks (MBDs)

  • World Bank: No new project finance except in "rare circumstances." See Energy Sector Directions Paper, discussed by Executive Board on July 16, 2013.[2]
  • European Investment Bank (EIP) - July 24, 2013[3]
  • European Bank for Reconstruction and Development (EBRD) - December 13, 2018 - Announcement of no financing for coal and most oil projects.[4]
  • Asian Infrastructure Investment Bank (AIIB) - January 2017[5]
  • Asian Development Bank (ADB) - as of October 2018[6]

Export Credit Agencies (ECAs)

  • Organisation for Economic Co-operation and Development (OECD) - October 1, 2017 - Designates categories of coal plants ineligible for export credits. (Covers 36 ECAs) [7]

Sovereign Wealth Funds

  • Norwegian Sovereign Wealth Fund - 2015 - Companies generating over 30% revenue from coal are excluded.

National Developmental Finance

  • France - Restrictions on bilateral development finance for coal. (Statement regarding bilateral finance through AFD)[8]
  • Germany - Restrictions on coal finance at bilateral institutions. KfW-Ipex bank restrictions still allow for coal plants under 500 MW and over 500 MW if they meet a minimum efficiency standard. (Federal Government report on the financing of international coal-related projects for the Economic Committee of the Bundestag.)[8]
  • United Kingdom - Issued policy statement similar to U.S. and Nordic joint statement restricting coal finance overseas, but did not apply to export credits. (Statement)[8]
  • United States - Joint statement with U.S. and Nordic countries: ending public financing for new coal-fired power plants overseas (at MDBs and in bilateral finance) except in rare circumstances. (Treasury guidance)[8]
  • Denmark, Finland, Iceland, Norway, Sweden - Joint statement with U.S. and Nordic countries: ending public financing for new coal-fired power plants overseas (at MDBs and in bilateral finance) except in rare circumstances.[9]
  • Brazil - "BNDES has announced it will no longer support coal plants."[8]
  • Netherlands - Netherlands Development Finance Company (FMO) policy statement (note: weaker than an actual policy)[8]
  • Sweden - Swiss Investment Fund for Emerging Markets (SIFEM)[1]

Banks

Restrictions on both coal mining and coal plants

  • Morgan Stanley - November 2015 policy against financing coal-fired plants in developed countries.[10]
  • Natixis - August 2016 - No longer financing coal mines and coal plants.[11]
  • ING - INFG refrains from engaging in new coal mines (January 2016). ING will not finance any new coal mines (Announced October 2015, policy January 2016).[11]
  • Commerzbank - No financing new coal mines or new coal plants, with an exception for coal plant components. (March 2018)[11]
  • KBC - Non financing of new coal plants, including mining, with an exception for Czech Republic.(September 2017). Exception cancelled in May 2018.[11]
  • Credit Agricole SA - No longer financing coal mining. (June 2015) No longer financing coal plants or extensions. (November 2016)[11]
  • Societe Generale - No longer involved in dedicated transactions linked to new coal mines. (Press release November 2015, policy October 2016.) No longer financing new coal plants or extensions.(October 2016.)[11]
  • Rabobank - Will not directly finance exploration, extraction of production of coal for power generation. Will not finance coal power generation. (January 2017.)[11]
  • BNP Paribas - Will not provide any financial product or services to mining projects that are dedicated to thermal coal extraction. Will not provide any financial product or services to coal plants. (January 2017.)[11]
  • Deutsche Bank - Will not grant new financing for greenfield thermal coal mining. Will not grant new financing for new coal plant construction. (May 2018.)[11]
  • U.S. Bancorp - "We will not participate in any relationship involving or provide project financing or other forms of asset-specific financing for the development of new coal mines." (June 2016.) "The Company prohibits direct project financing of coal-fired power plants and relationships that involve constructing such plants."(April 2017.)[11]
  • ABN MRO - "ABN AMRO will not knowingly finance or invest in the following activities: New thermal coal mining." "The ABN AMRO Exclusion List contains all activities that the Bank excludes from financing. In relation to the energy sector these exclusions are: New coal-fired power plants." (May 2017)[11]
  • RBS - "The following prohibitions apply when lending to a specific project: Construction of ‘new coal’ infrastructure projects, namely thermal coal mines." "The following prohibitions apply when lending to a specific project: Project finance for the construction of new coal infrastructure projects, namely unabated coal power stations." (May 2018)[11]
  • Lloyds Banking Group - Non finance for new thermal coal mines or new coal plants. (August 2018)
  • Standard Chartered- "We will not provide project finance or project finance advisory services to new standalone, non captive thermal coal mining projects." (May 2016.) "We will not directly finance any new coal-fired power plant projects, including expansions, in any location." Policy xcludes existing commitments for Vung Ang 2 and Vinh Tan 3. (September 2018.)[11]
  • Santander - Santander Group will not provide financial products and/or services to any of the following activities: Any new thermal coal mine projects worldwide; any new coal-fired power plant projects worldwide. (November 2018.)[11]
  • Barclays - In April 2018, Barclays said that it "has no appetite for project finance transactions for the development of greenfield thermal coal mines anywhere in the world." (April 2018)[11] In January 2019 Barclays expanded its policy to rule out financing new coal plants as well as new thermal coal mines.[12]
  • Westpac Group - April 2017[1]
  • HSBC - initial restrictions in October 2017, further restrictions in April 2018[1][11]
  • Barclays - "Barclays has no appetite for project finance transactions for the development of greenfield thermal coal mines anywhere in the world." (April 2018)[11] Added restriction on coal-fired plants in January 2019.[1]
  • BBVA - initial restrictions in February 2018.[1]
  • Citi - initial restrictions in October 2015, further restrictions in December 2018.[1]
  • Bendigo Bank - initial restrictions in 2014.[13]
  • Australia Bank - restrictions on mining and coal-fired plants.[1]

Restrictions on coal plants only

  • SEB - SEB will not provide finance for greenfield coal power generation plants. (November 2016.)[11]
  • PNC - PNC prohibits construction financing of all single-site coal-fired power plants. (June 2017.)[11]
  • DZ Bank - "In Autumn 2017, the Board of Managing Directors also resolved to reject all new future requests for project finance for coal-fired power stations." (November 2017.)[11]
  • Nedbank - As from 2018, excluding its existing commitments* to round 1 of [South Africa’s] coal baseload procurement programme, the bank has undertaken not to provide project financing or other forms of asset-specific financing where the proceeds will be used to develop a new coal-fired power plant, regardless of country or technology. Policy excludes existing commitments: Thabametsi and Khanyisa. (April 2018.)[11]
  • Sumitomo Mitsui Trust Bank - restrictions as of July 2018.[1]
  • Standard Bank - restrictions as of September 2018.[1]

Restrictions on mining only

  • JPMorganChase - JPMC will not provide project financing or other forms of asset-specific financing where the proceeds will be used to develop a new greenfield coal mine. (March 2016.)[11]
  • Credit Suisse - Credit Suisse will not provide any form of financing that is specifically related to the development of a new greenfield thermal coal mine, or where the majority of the use of proceeds is intended for a new greenfield thermal coal mine. (March 2017.)[11]
  • NAB - "While we will continue to support our existing customers across the mining and energy sectors, including those with existing coal assets, NAB will no longer finance new thermal coal mining projects." (December 2017.)[11]
  • DBS - "Going forward, DBS will also cease all project financing of greenfield thermal coal mines." (January 2018)[11]
  • Bank of America - restrictions as of May 2015.[1]
  • Goldman Sachs - restrictions as of November 2015, however IEEFA notes that "there is no disclosure, the exposure is increasing not decreasing, and off-balance sheet activity is extreme."[1]
  • Wells Fargo - restrictions as of November 2015.[1]
  • Irmarinen - restrictions as of 2016.[1]
  • OP Financial Group - restrictions as of 2016.[1]
  • UBS - restrictions as of April 2017.[1]

Insurers

  • AXA (France) - 2017 - First global insurer to restrict coal project underwriting in addition to investment.
  • Allianz (Germany) - Does not insure coal and has divested from coal
  • Dai-ichi Life Insurance (Japan) - May 2018 - Will no longer finance new overseas coal plants[14]
  • Generali (Italy) - Has divested from coal
  • Lloyd's (UK) - Has divested from coal
  • Zurich (Switzerland) - November 2017 - Does not insure coal and has divested from coal[15]
  • Hannover Re - 2018[15]
  • AG2R La Mondiale - 2018[15]
  • Groupama - 2018[15]
  • Meiji Yasuda - policy excludes plants using ultra-supercritical (USC) technology.[16]
  • Nippon Life - as of July 2018[17]
  • Macif - as of July 2018.[1]
  • Varma - as of January 2019.[1]

Reinsurance companies

  • Munich Re (Germany) - Does not insure coal and has divested from coal
  • Swiss Re (Switzerland) - Does not insure coal and has divested from coal
  • Hannover Re (Germany) - Has divested from coal
  • SCOR (France) - Does not insure coal and has divested from coal

Articles and resources

References

  1. 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 Over 100 Global Financial Institutions Are Exiting Coal, With More To Come, IEEFA, Feb. 27, 2019
  2. "World Bank Group Sets Direction for Energy Sector Investments," World Bank, July 16, 2013
  3. "EIB restricts – but does not eliminate – coal and other fossil fuel lending," Bankwatch Network, 24 July 2013
  4. Razvan Zamfir, "EBRD to stop financing coal projects in order to protect the environment," Business Review, 13 December 2018
  5. "AIIB Energy Sector Strategy: Sustainable Energy for Asia, Discussion Draft for Consultation," Asian Infrastructure Investment Bank, January 2017
  6. Asian Development Bank signals end to ‘dirty’ coal finance, Climate Change News, Oct. 24, 2018
  7. "Arrangement on Officially Supported Export Credits, Annex VI: Sector Understanding on Export Credits for Coal-Fired Electricity Generation Projects," OECD, 1 October 2017
  8. 8.0 8.1 8.2 8.3 8.4 8.5 "Talk is Cheap," Oil Change International, July 2017
  9. (Joint Statement by Kingdom of Denmark, Republic of Finland, Republic of Iceland, Kingdom of Norway, Kingdom of Sweden & the United States of America, "Talk is Cheap," Oil Change International, July 2017
  10. Don’t Let Its New Policy Fool You. Morgan Stanley Is A Huge Coal Bank., Huffington Post, Dec. 7, 2015
  11. 11.00 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 "List of banks that ended direct finance for new coal mines/plants," BankTrack, December 13, 2018
  12. ["https://www.banktrack.org/article/barclays_energy_policy_review_half_measures_not_good_enough_says_banktrack "Barclays Energy Policy Review: Half Measures Not Good Enough, Says BankTrack,"] BankTrack, January 2019
  13. Coal, and Bendigo Bank, beyond the pale, Financial Review, Jun. 6, 2014
  14. "Japanese insurance companies begin restricting coal finance," CoalWire May 10, 2018
  15. 15.0 15.1 15.2 15.3 "Insuring Coal No More Scorecard: Unprecedented Action From Insurers Puts Coal Industry Under Pressure," Unfriend Coal, December 3, 2018
  16. Meiji Yasuda Life Insurance’s new coal policy poses serious question over Japanese financial sector’s effectiveness in tackling climate change, Kiko Network, Sep. 14, 2018
  17. Japan's Nippon Life to stop financing coal-fired power, Reuters, Jul. 22, 2018

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