Major institutions provided $1.5 trillion to coal industry from 2019 to 2021 – research

Coal waits to be loaded onto railcars to leave the Hobet Mine in Boone County, West Virginia, U.S., May 12, 2016. REUTERS/Jonathan Ernst/File Photo

SHANGHAI, Feb 15 (Reuters) – Hundreds of financial institutions injected $1.5 trillion into the coal industry in the form of loans and subscriptions from January 2019 to November 2021, although many made net zero commitments , according to a report by a group of 28 non-governmental organizations. organizations showed.

Reducing coal use is a key part of global efforts to reduce global warming greenhouse gases and bring emissions to “net zero” by mid-century, and governments, businesses and financial institutions around the world have pledged to take action.

But banks continue to finance 1,032 companies involved in coal mining, trading, transportation and use, according to the study.

“Banks like to say they want to help their coal customers make the transition, but the reality is that almost none of these companies are making the transition,” said Katrin Ganswind, head of financial research at the within the German environmental group Urgewald, which led the research. “And they have little incentive to do so as long as the bankers keep writing them blank checks.”

The study says banks in six countries – China, the United States, Japan, India, Britain and Canada – were responsible for 86% of global coal financing during the period.

Direct lending amounted to $373 billion, with Japanese investment banks Mizuho Financial (8411.T) and Mitsubishi UFJ Financial (8306.T) – both members of the Net Zero Banking Alliance – identified as the two major lenders. Neither company immediately responded to requests for comment.

Another $1.2 trillion was funneled to coal companies through underwriting. All of the top 10 underwriters were Chinese, with the Industrial Commercial Bank of China (ICBC) in first place accounting for $57 billion. He did not respond to a request for comment.

Institutional investments in coal companies during the period amounted to $469 billion, with BlackRock topping the list with $34 billion. The US asset manager did not respond to a request for comment.

Comparative figures for previous years were not immediately available. Other research studies, however, have shown that investment in coal is on the decline.

The coal sector is responsible for nearly half of global greenhouse gas emissions. More than 40 countries pledged to end the use of coal following climate talks in Glasgow in November, although major consumers such as China, India and the United States did not agree. not registered. Read more

But more coal-fired power capacity invested by China overseas has been canceled than commissioned since 2017, according to a study by the Center for Research on Energy and Clean Air (CREA) last June. Read more

In addition, almost all development funding available internationally is now committed to reducing or ending investment in coal-fired power plants after China and the G20 decided to stop supporting new projects overseas. showed in November research from the Global Development Policy Center at Boston University. Read more

Additional reporting by Zoey Zhang; Editing by Jacqueline Wong

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