Banks provided US$1.5 trillion to coal sector in 2019-2021 despite net-zero pledges: NGOs
CTV
Financial institutions channeled more than US$1.5 trillion into the coal industry in loans and underwriting from January 2019 to November 2021, despite many having made net-zero pledges, a report by a group of 28 non-government organizations showed.
Cutting coal use is a key part of global efforts to slash climate-warming greenhouse gases and bring emissions down to net zero by the middle of the century, and governments, firms and financial institutions worldwide have pledged to take action.
But banks continue to fund 1,032 firms involved in the mining, trading, transportation and utilization of coal, the research showed.
"Banks like to argue that they want to help their coal clients transition, but the reality is that almost none of these companies are transitioning," said Katrin Ganswind, head of financial research at German environmental group Urgewald, which led the research.
"And they have little incentive to do so as long as bankers continue writing them blank checks."
