A leading national bank in the UK has announced that it will no longer fund any new coal-fired power stations, committing to a multi billion pound carbon reduction programme.
Lloyds Banking Group announced in a statement this week that it will no longer finance coal-fired power stations or thermal coal mines as it continues a significant transition to a lower-carbon future.
Earlier this year, the banking group launched a £2 billion Clean Growth Finance initiative designed to support and encourage its banking clients to invest in a lower carbon future – including a number of mining clients.
It will still continue to work with existing clients whose operations include coal mining or power generated from coal, or supply equipment or services to these sectors, to actively support their transition to lower carbon models in line with the Paris Agreement.
David Oldfield, Group Director, Commercial Banking said: “We are already committed to supporting businesses that are leading the way by investing in renewable energy and a cleaner future, including those that are diversifying their business models away from fossil fuels.
“To achieve the aims set out in the 2015 Paris Agreement, continued reduction in the amount of coal mined and used to generate electricity is needed. This announcement reiterates our commitment to support the transition.”
Lloyds becomes the third leading banking group to change their approach to its coal investments, joining the ranks of HSBC and the Royal Bank of Scotland which announced similar strategic shifts earlier this year.
It’s not just the UK either, earlier this year Japanese banking company Nippon Life Insurance announced that it too would no longer extend loands or invest in coal fired power plants.
This is a trend that is expected to continue, particularly after it was revealed that G20 public global financing reached a five-year high in 2017.
Indonesia and Bangladesh, as well as wider Asia, were identified as some of the largest recipients of public financing for coal projects.