End Of Coal? More Banks Plan To Phase Out Financing Of Coal-Related Businesses – By Palash Ghosh (IB Times) / Aug 31 2020
KEY POINTS
- BNP Paribas pledged to completely exit the global coal business by 2040
- BNP Paribas will likely cancel relationships with 30% to 50% of its existing clients in the power generation business
- ABN Amro Bank of Netherlands has prohibited investments in both coal mining and coal-powered plants
As more banks around the world have decided to gradually end financing coal mining activities, they must take stock of the repercussion of these measures, while focusing more on renewable energy enterprises.
For example, French international banking giant BNP Paribas said it stands to lose up to 50% of its power generation clients due to its plan to phase out investments in coal.
Earlier this year, BNP Paribas pledged to completely exit the global coal business by 2040.
Laurence Pessez, BNP Paribas’s corporate social responsibility director, told S&P Global Market Intelligence: “We’ve been talking about coal reduction, diversification, the need to fight climate change and align with the Paris Agreement for a long period of time.”
As a result, she said, BNP Paribas will end relationships with energy clients unwilling to move away from coal.
“Leaving a client is not something natural for a business,” Pessez said. “For us, it is the ultimate solution when there is no other [way], when the client is not willing to interact with us.”
Continue to article: https://www.ibtimes.com/end-coal-more-banks-plan-phase-out-financing-coal-related-businesses-3037639
