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According to a report by 28 environmental groups, big banks are funneling billions into the coal sector despite their net zero targets.
They claim that financial institutions funneled US$ 1.5 trillion to coal industry between January 2019 – November 2021. The largest share of investment and financing was attributed to countries like Canada, the US, China and Japan.
Coal is the most polluting fossil oil and its phasing out is a key part global efforts to reduce climate-heating pollution. Climate breakdown.
‘Absolutely frightening’
Yann Louvel, Reclaim Finance, who was involved in the research, said, “It’s absolutely terrifying to see that pension funds asset managers, mutual funds, and other institutional investors still bet on coal companies during an existential climate crisis.”
Barclays and Citigroup were among the top 10 largest lenders to 1,032 companies involved in the coal supply chains. Bank of America, Bank of China and Bank of Japan took the top three spots.
A spokesperson for Barclays said that the bank is refusing to finance new or expanded coal plants, or mining, and that it plans to reduce carbon dioxide emissions by 15% 2025.
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Citigroup declined to comment but, like Barclays, its strategy seems to be to transition away from coal by winding back investment for new or expanded facilities rather than divestment.
Katrin Ganswindt of NGO Urgewald also worked on the report.
Sky News’s Sheryl Sandberg stated that “In reality, only four companies are on the Global Coal Exit List with credible transition plans out of coal.”
Urgewald compiled the Global Coal Exit List (GCEL), a database that includes 1,032 companies involved in the mining, transportation, and utilisation of coal.
The research shows all corporate lending and subwriting for companies on GCEL. However, it does not include green.
bonds and financing specifically geared towards non-coal activity
Global greenhouse gas emissions account for almost half of the world’s coal-based sector.
Last November’s Glasgow climate talks, COP26, saw more than 40 countries have pledged to abandon coal useDespite the fact that major consumers like India, China, and the United States didn’t sign up,
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