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Still banking on coal, over $385 billion flowed into coal in last 3 years
Still banking on coal, over $385 billion flowed into coal in last 3 years

Time of India

time10-07-2025

  • Business
  • Time of India

Still banking on coal, over $385 billion flowed into coal in last 3 years

BATHINDA: Urgewald , a human rights organization that researches coal companies, along with 23 NGO partners, on Tuesday published research examining the development of commercial banks' financial flows to coal companies since Glasgow, even as it looked like an end of coal was in sight in November 2021, as 197 governments agreed to phase down coal, and many of the world's largest commercial banks made pledges to decarbonize their portfolios at COP 26 at Glasgow. The research found that in the past 3 years, commercial banks channeled over $385 billion to the global coal industry. 'We were hoping to at least see a consistent downward trend, but the annual breakdown of our data shows that while coal financing dropped from $132 billion in 2022 to $123 billion in 2023, it shot back up to $130 billion in 2024. It's as if Glasgow never happened,' says Katrin Ganswindt, Director of Financial Research at Urgewald. Proposals for new coal are quickly losing ground as renewables, and especially solar, have become the cheapest option for building new power plants in almost every country in the world. In 2024, solar and wind already accounted for 90% of power capacity growth worldwide. Although the pipeline of new coal projects is rapidly dwindling, the existing coal plant fleet of over 2,100 GW is not, and its continued emissions are bringing us ever closer to disastrous climate tipping points. The International Energy Agency (IEA)'s latest Net Zero by 2050 Roadmap warns that coal use needs to end by 2030 in advanced economies and by 2040 globally. 2030 is just around the corner, yet only 24 out of the largest 99 commercial banks have plans to phase out financing of coal companies by these timelines. 'The coal party is over, but most banks still refuse to leave the dance floor,' comments Ganswindt. 92% of the $385 billion commercial banks channeled to the coal industry between 2022 and 2024 came from banks headquartered in 6 countries or regions: China $248167 million ($248 billion), the US $ 51,063 million ($51 billion), Japan $ 21,246 million ($21 billion), Europe ($20 billion), and Canada $ 12,303 million ($12 billion), and India $ 8476 million (8 billion), out of which State Bank of India contributed with $1782 million. At least 30% of our planet's temperature rise is due to the burning of coal. 2024 was the hottest year on record at about 1.55°C above pre-industrial levels. Meeting the commitment of the 2021 Glasgow Climate Summit to phase coal down and out has become more important than ever as more and more of the world's population is exposed to record-breaking wildfires, droughts, heat waves, floods and other extreme weather events. Quitting coal is the easiest of the many steps required to achieve net-zero emissions by 2050. Yet many of the world's commercial banks stubbornly refuse to acknowledge that phasing out coal requires phasing out coal financing. 'Our findings are a call to action for asset owners, financial regulators, and civil society organizations who realize that financing coal puts our economy, the financial system, and us all at risk. Investors need to reconsider their investments in the banks that are keeping coal alive. Regulators need to curtail financial flows that increase systemic risk. And civil society organizations need to call out each and every bank that is perpetuating the coal industry's stranglehold on our future,' says Ganswindt.

Still banking on coal, over $385 billion flowed into coal in last 3 years
Still banking on coal, over $385 billion flowed into coal in last 3 years

Time of India

time09-07-2025

  • Business
  • Time of India

Still banking on coal, over $385 billion flowed into coal in last 3 years

In the past 3 years, commercial banks channeled over $385 billion to the global coal industry. BATHINDA: Urgewald, a human rights organization that researches coal companies, along with 23 NGO partners, on Tuesday published research examining the development of commercial banks' financial flows to coal companies since Glasgow, even as it looked like an end of coal was in sight in November 2021, as 197 governments agreed to phase down coal, and many of the world's largest commercial banks made pledges to decarbonize their portfolios at COP 26 at Glasgow. The research found that in the past 3 years, commercial banks channeled over $385 billion to the global coal industry. 'We were hoping to at least see a consistent downward trend, but the annual breakdown of our data shows that while coal financing dropped from $132 billion in 2022 to $123 billion in 2023, it shot back up to $130 billion in 2024. It's as if Glasgow never happened,' says Katrin Ganswindt, Director of Financial Research at Urgewald. Proposals for new coal are quickly losing ground as renewables, and especially solar, have become the cheapest option for building new power plants in almost every country in the world. In 2024, solar and wind already accounted for 90% of power capacity growth worldwide. Although the pipeline of new coal projects is rapidly dwindling, the existing coal plant fleet of over 2,100 GW is not, and its continued emissions are bringing us ever closer to disastrous climate tipping points. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Open NRI Account in 4 hours HSBC Undo The International Energy Agency (IEA)'s latest Net Zero by 2050 Roadmap warns that coal use needs to end by 2030 in advanced economies and by 2040 globally. 2030 is just around the corner, yet only 24 out of the largest 99 commercial banks have plans to phase out financing of coal companies by these timelines. 'The coal party is over, but most banks still refuse to leave the dance floor,' comments Ganswindt. 92% of the $385 billion commercial banks channeled to the coal industry between 2022 and 2024 came from banks headquartered in 6 countries or regions: China $248167 million ($248 billion), the US $ 51,063 million ($51 billion), Japan $ 21,246 million ($21 billion), Europe ($20 billion), and Canada $ 12,303 million ($12 billion), and India $ 8476 million (8 billion), out of which State Bank of India contributed with $1782 million. At least 30% of our planet's temperature rise is due to the burning of coal. 2024 was the hottest year on record at about 1.55°C above pre-industrial levels. Meeting the commitment of the 2021 Glasgow Climate Summit to phase coal down and out has become more important than ever as more and more of the world's population is exposed to record-breaking wildfires, droughts, heat waves, floods and other extreme weather events. Quitting coal is the easiest of the many steps required to achieve net-zero emissions by 2050. Yet many of the world's commercial banks stubbornly refuse to acknowledge that phasing out coal requires phasing out coal financing. 'Our findings are a call to action for asset owners, financial regulators, and civil society organizations who realize that financing coal puts our economy, the financial system, and us all at risk. Investors need to reconsider their investments in the banks that are keeping coal alive. Regulators need to curtail financial flows that increase systemic risk. And civil society organizations need to call out each and every bank that is perpetuating the coal industry's stranglehold on our future,' says Ganswindt.

Global financial industry retreat from coal hasn't cut its funding
Global financial industry retreat from coal hasn't cut its funding

Axios

time09-07-2025

  • Business
  • Axios

Global financial industry retreat from coal hasn't cut its funding

Financial industry pledges to move away from coal haven't translated into reduced worldwide funding, per a new analysis from environmental groups. Why it matters: Coal is the most CO2-intensive fuel, and its future trajectory will help dictate how much global warming occurs. Driving the news: The report from German NGO Urgewald and other groups traces funding since the 2021 UN climate conference in Glasgow, Scotland. The summit featured many non-binding country pledges to phase down coal and major bank vows to wring CO2 out of their portfolios over time. What they found: The analysis of 650 commercial banks worldwide, which explores finance for thermal coal production and coal-fired power, shows $130 billion in loans and underwriting in 2024. That's up from $123B in 2023 and similar to the $132B in 2022, the year after COP26. China was by far the biggest source of finance in 2022-2024 at $248B. The rest of the top five are the U.S. ($51B), Japan ($21B), Europe ($20B) and Canada ($12B). The intrigue: A number of major banks — including U.S. giants — have been leaving various industry climate alliances. "Since this exodus, Citi is the only US bank with a public commitment to phase out coal financing," the report states, though it also finds Citi has increased financing since Glasgow. And Bloomberg reports that "after an initial flurry of action to pare back their financing, some banks have relaxed their coal restrictions in recent years." Zoom out: The data comes as global energy demand is rising, bringing new consumption records across sources. "In 2024, oil, gas, coal, nuclear, hydro and renewable energy all registered increases, that is, all forms of energy saw an increase in demand[,] something that last occurred in 2006," per the recent Statistical Review of World Energy. Coal demand is still rising — albeit more slowly — as consumption growth centered largely in China and India outpaces declines in advanced economies.

Banks significantly increased fossil fuel financing in 2024, analysis finds
Banks significantly increased fossil fuel financing in 2024, analysis finds

The Herald Scotland

time17-06-2025

  • Business
  • The Herald Scotland

Banks significantly increased fossil fuel financing in 2024, analysis finds

A coalition of research and campaign groups, including the Rainforest Action Network and Reclaim finance, analysed the banks' lending and underwriting to 2,730 companies active across the fossil fuel industry. These were reported in sources such as Urgewald's Global Oil and Gas Exit List (GOGEL) and Global Coal Exit List (GCEL), Bloomberg and London Stock Exchange Group (LSEG). According to this year's findings, the top banks increased fossil fuel financing by 162 billion dollars (£120 billion) from 2023 to 2024. This marks a shift in direction after fossil fuel financing had been decreasing over the previous years since 2021. Since Donald Trump's election victory in the US last year, companies across many sectors have been weakening their climate commitments, cutting ESG investments and pulling out of climate groups. Major US lenders have left the Net Zero Banking Alliance, the sector's top climate coalition, and an increasing number of banks have watered down, or abandoned, past commitments regarding fossil fuels. The Banking on Climate Chaos report found that since the 2015 UN Paris Agreement – an international deal secured in 2015 in France to limit rising temperatures – banks have now financed fossil fuels by 7.9 trillion dollars (£5.8 trillion). The analysis also suggests that loans were the top form of financing last year, with an increase to 467 billion dollars (£343 billion) from 422 billion dollars (£310 billion) in 2023. The International Energy Agency has said that no new fossil fuel projects should be developed beyond existing fields to remain within the temperature limit. However, the report found that banks have financed companies that are expanding fossil fuels with 1.6 trillion dollars (£1.1 trillion) since 2021, and 429 billion dollars (£315 billion) alone in 2024 – a rise of 85 billion dollars (£62 billion) from the year before. The report also identifies JP Morgan Chase as the largest fossil fuel financier in the world, committing 53.5 billion dollars (£39.3 billion) to fossil fuel companies in 2024. British bank Barclays was the largest fossil fuel financier Europe in 2024, at 35.4 billion dollars (£26.0 billion), according to the report, which also found it to be among the top four with the largest absolute increase in fossil fuel financing. For the other UK banks on the list, HSBC provided a total of 16.2 billion dollars (£11.9 billion) in fossil fuel financing, Natwest provided 2.7 billion dollars (£1.9 billion), and Lloyds provided 1.6 billion dollars (£1.1 billion) – although the latter comes as a decrease from 2.3 billion dollars (£1.7 billion) in 2023, according to the analysis. Banking on Climate Chaos is authored by Rainforest Action Network, BankTrack, the Centre for Energy, Ecology, and Development, Indigenous Environmental Network, Oil Change International, Reclaim Finance, Sierra Club, and Urgewald. Allison Fajans-Turner, policy Lead at Rainforest Action Network, said: 'Even in the face of worsening disasters and increasingly dire warnings of scientists and policy experts, banks actually increased their financing to fossil fuels between 2023 and 2024 and still poured billions into expanded fossil infrastructure. 'Only rapid and robust binding government regulation and oversight can make banks change course. 'Without binding regulation, banking on climate chaos will remain banks' dominant investment strategy, tanking our economy and our planet.' Tom BK Goldtooth, executive director of the Indigenous Environmental Network, said: 'Despite their greenwashing and false promises, these banks continue to bankroll the expansion of the fossil fuel industry and the false solutions that deepen climate injustice, land grabbing, and human rights abuse. 'From carbon markets to carbon capture to geoengineering techno-fixes, these schemes are distractions from the real solutions rooted in Indigenous sovereignty, traditional Indigenous knowledge, land and oceans defence, and a just and energy transition away from extractive capitalism. 'Our lands and waters are not sacrifice zones, and our Peoples are not collateral damage.' David Tong, global industry campaign manager at Oil Change International, said: 'In 2025, banks have no excuse to keep financing fossil fuel companies. 'No major oil and gas companies we analyse plan to do anything even close to what is needed to hold global warming to 1.5C.' Lucie Pinson, director and founder at Reclaim Finance, said: 'This year, banks have shown their true colours — many have walked away from climate commitments and doubled down on financing fossil fuel expansion, even as global temperatures break records. 'A few European banks may have inched forward, but for most, the lure of dirty money has proven too strong.' The PA news agency has contacted JP Morgan Chase, Barclays, HSBC, Natwest and Lloyds for comment.

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