Banks Distance Themselves From Coal

first_img FacebookTwitterLinkedInEmailPrint分享Gina-Marie Cheeseman for Triple Pundit:Coal is a dirty fossil fuel that is responsible for a big portion of carbon emissions. The Institute for Energy Economics and Financial Analysis predicts a bleak future for coal. It sees declining demand and the increasing use of renewables as accelerating the trend of using less fossil fuels like coal.Clearly, some banks are getting the memo that coal is a thing of the past as two big banks recently updated their coal policies. One of them is JPMorgan Chase, which released new commitments to stop financing for the coal industry. The other is Deutsche Bank which released a new corporate responsibility policy that explains the bank’s decision to phase out funding mountaintop removal coal mining.JPMorgan’s new coal policies prohibit financing new coal mines or a new coal-fired power plant in developed countries. The policies specifically prohibit “project financing or other forms of asset-specific financing where the proceeds will be used to develop a new greenfield coal mine.” A greenfield mine is an uncharted one, where coal deposits were not known to previously exist.JPMorgan’s new policies also include the following:It will reduce its “credit exposure” to companies that derive most of their revenues from extracting and selling coal.It will apply “enhanced due diligence” to transactions with diversified mining and industrial companies whose proceeds will be used to finance new coal production capacity.It will not provide financing for companies that will developed a new coal-fired power plant outside of developed countries unless ultra-supercritical steam generation technology, a method that experts say is cleaner and more efficient, is used.Full article: JPMorgan, Deutsche Bank Set New Coal Policies Banks Distance Themselves From Coallast_img read more