February 27, 2019 Read More →

Global financiers fleeing the coal sector, finds report

ESI Africa

New research from the Institute for Energy Economics and Financial Analysis (IEEFA) reveals that over 100 major global financial institutions have introduced policies restricting coal funding.

The report, Over 100 Global Financial Institutions Are Exiting Coal, With More to Come, finds global capital is fleeing the coal sector at an electrifying rate.

Every month since 2013, a significant financial institution has announced restrictions on #coal investment. @ieefa_institute report: http://ow.ly/1gQz50mc68p

The report found that since the start of 2018, there have been 34 new or significantly improved announcements from global financial institutions restricting coal. On average, there is one new announcement every two weeks.

The World Bank announced the first-ever restrictions in 2013, with the 100th announcement in December 2018 coming from the European Bank of Reconstruction and Development (EBRD) removing three country exceptions to its coal finance ban.

Report author Tim Buckley, Director of Energy Finance Studies, IEEFA, says when globally significant investors act, global momentum increases.

“With the energy transition to cheaper technologies gathering pace, the likelihood of investors having to wear billions of dollars in additional stranded assets is impossible to ignore,” said Buckley.

“The smart money is jumping ship. The only question now is, who’s next?”

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