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Climate change: Big banks pump cash into coal industry in spite of net zero pledges, research finds

Big banks are channelling billions into the coal industry in spite of their own net zero targets, according to a new report from a group of 28 environmental campaign groups. They say financial institutions channeled US$ 1.5 trillion to the coal industry between January 2019 and November 2021, with those from the UK, US, China, Japan, India and Canada responsible for more than 86% of coal financing and investment.

Coal is the most polluting fossil fuel and phasing it out is a key part of global efforts to slash climate-heating pollution to stave off looming climate breakdown. 'Absolutely frightening' "It's absolutely frightening to see that pension funds, asset managers, mutual funds and other institutional investors are still betting on coal companies in the midst of an existential climate crisis," said Yann Louvel from Reclaim Finance, involved with the research.
Barclays and Citigroup made it in the top 10 highest lenders to the 1,032 firms involved in the coal supply chain, along with Bank of China, Bank of America and Japanese firms taking all top three spots.
A Barclays spokesperson said the bank now refuses finance for new or expanded coal plants or mining, and aims to reduce carbon dioxide pollution from its energy portfolio by 15% 2025.