Over 100 and Counting

Financial institutions are restricting fossil fuel funding

To date, over 100 and counting globally significant banks and insurers*, and asset managers and owners** have announced their divestment from fossil fuels including coal, oil, LNG, gas, oil sands and arctic drilling.

Many have also committed to reducing their fossil fuel exposure to align with the Paris Agreement’s emissions reduction target of 1.5 – 2.0° celsius.

When significant investors act, global momentum increases. The question now is, who’s next?

Even for companies that have good projects it’s very difficult for them to raise any money in these markets

Caroline Donally, managing director, Denham Capital

The trend in financial markets is that you see fewer and fewer investors still willing to fund fossil fuels

Eskom CEO Phakamani Hadebe

We are aware that financial institutions are adopting policies that restrict coal financing

Enea’s CEO, Miroslaw Kowalik

As the pool of lenders and insurers decreases, the owners of fossil fuel-related assets will be forced to increasingly look offshore for support and will face increasing costs

NSW Minerals Council

The cost of insuring mines is getting more expensive

Chief Executive Officer Mxolisi Mgojo, Exxaro Resources Ltd.

The coal industry is in terminal decline

The large impact we foresaw from the market disappearing, we always saw as out there in the future. Well, the future is now.

Guillermo Fonseca, CEO of Cerrejon

As a coal producer, it is harder to attract capital

New Hope Chief Executive Shane Stephan

The project financing ability of new coal projects is frankly becoming harder and harder

CFO Doug Gain, Seriti Resources Holdings Ltd.

Banks are increasingly reluctant to fund coal related projects

Dileep Srivastava, director at Bumi Resources, Indonesia

About 85% of the market now don’t want to finance coal power plants

Dharma Djojonegoro, Deputy CEO, PT Adaro Power

You talk to anyone at the moment, they say there’s no money

Boris Kamstra, executive director, Alphamin Resources

Coal is the past, and renewable energy is the future. We're getting out of coal

African Development Bank President Akinwumi Adesina

We are in a transition and will end up without material thermal coal

Anglo American Chief Executive Officer Mark Cutifani 

The ultimate goal of this restriction is to drive a swift transition away from thermal coal globally

Allianz SE

By going coal free, we are sending a strong signal on the urgency of shifting from fossil to renewable energy

KLPs CEO Sverre Thornes

Climate change will be the biggest wild card for investors

...involving the biggest challenge not only for our industry but for human life itself

State Street chief Cyrus Taraporevala

Cutting carbon emissions can deliver a long-term dividend to the environment

...and in most cases an improved financial performance

Clean Energy Finance Corporation (CEFC) chief executive Ian Learmonth

Climate change is a rapidly escalating investment issue

Brunel CIO Mark Mansley

The trend in financial markets is that you see fewer and fewer investors still willing to fund fossil fuels

Eskom CEO Phakamani Hadebe

 

There is a rising global demand for action on climate change

Storebrand Chief Executive Officer, Odd Arild Grefstad 

It is important to seize the opportunity to deploy capital to support climate change solutions

State Street chief Cyrus Taraporevala

The evidence on climate risk is compelling investors to reassess core assumptions about modern finance

Laurence D. Fink, chief executive of BlackRock

Coal will be phased out, oil use is set to peak, renewable energy generation is rising

Daniel Morris, senior investment strategist at BNP Paribas

Achieving net zero will require a whole economy transition

- every company, every bank, every insurer and investor will have to adjust their business models

Mark Carney, Governor of the Bank of England

Coupled with poor financial returns, climate change concerns have the industry dramatically out of favor at the moment, in most every corner of the investing and political world

Bobby Tudor, founder of investment bank Tudor, Pickering, Holt & Co.

Notes

* IEEFA defines globally significant financial institutions as banks and insurers / reinsurers as having assets under management (AuM) greater than US$10billion.

** IEEFA defines globally significant asset managers / owners as having assets under management (AuM) greater than US$50 billion.

IEEFA will continue to monitor announcements and will add or delete institutions pending implementation of said announcements.

Exclusions

Significant financial institutions are restricted from this tally if they have AUM<US$10billion, and/or the institution’s announcement has not been followed up with public disclosure, and/or the restrictions are selectively limited.

Further reading

October 2021: India and Australia’s richest race to net zero by 2030

October 2021: Spiking coal prices: Don’t blame the energy transition

September 2021: As fossil fuel prices skyrocket globally, renewables grow steadily cheaper

September 2021: President Xi Jinping’s profound United Nations General Assembly speech

September 2021: High stakes for Asian Development Bank’s ambitious coal power retirement plan

September 2021: Harvard fossil fuel divestment can serve as model for other institutions nationally and globally

September 2021: Gas is exiting the global energy mix, providing lessons for emerging markets

July 2021: Global investors are moving away from the massive climate-related risks associated with fossil fuels

May 2021: IEA’s net zero emissions by 2050 maps the huge increase in global ambition

May 2021: Global finance is mobilising to meet East Asia’s net-zero ambition

April 2021: Fossil fuel pressure and risks mounting for multilateral development banks

March 2021: Major investment advisors BlackRock and Meketa provide a fiduciary path through the energy transition

February 2021: ANZ divesting from the world’s largest coal export port is ‘pragmatism’

February 2021: Capital markets are shifting decisively towards cleaner investments

December 2020: Malaysia’s CIMB announces coal financing phase-out by 2040 as Asia’s fossil fuel divestment drive accelerates

October 2020: Why 2020 is turning out be a pivotal year for fossil fuel exits

October 2020: Financial retreat from oil and gas tracked

October 2020: From zero to fifty, global financial corporations get cracking on major oil/gas lending exits

July 2020: Coal, LNG, petrochemical sectors face poor outlook and uphill battle for investors

June 2020: Why are corporate giants pulling out of thermal coal?

April 2020: Asian financial institutions also beginning to exit coal financing

April 2020: Coal finance is heading to its logical terminal conclusion

February 2020: Nordic region leading by example since 2013

January 2020: BlackRock takes first step towards aligning US$7 trillion fund with Paris Agreement

December 2019: Tipping point looms for fossil fuels as capital flows to renewables

December 2019: Global capital acknowledges stranded asset risks

November 2019: Global coal power set for record fall in 2019

October 2019: AXIS joins 28 global insurers exiting coal financing

August 2019: IFM Investors is the latest asset manager moving to align with Paris

July 2019: Smart countries adapt to finance industry’s exodus from coal

July 2019: Coal pipeline shrinking, stranded asset risk ballooning, renewables ever cheaper

May 2019: Asian banks add to growing number of major financial institutions exiting coal

May 2019: The global energy transformation is well underway

April 2019: Norway’s GPFG sovereign fund to invest up to $14bn in unlisted renewables

March 2019: Japan: Pivot from thermal coal to renewables is building

March 2019: First Chinese major joins over 100 global financial institutions restricting coal finance

February 2019: Over 100 Global Financial Institutions Are Exiting Coal, With More to Come