Deutsche Bank puts first Restrictions on Coal Finance, but still has Long Way to Go
Deutsche Bank announced plans to reduce its exposure to thermal coal and its decision to no longer grant project financing for greenfield thermal coal mines and new coal-fired power stations. “This is a welcome and long overdue decision, but addresses only a small part of the problem,” says Heffa Schuecking, director of urgewald, one of Germany’s leading campaign organizations.
Schuecking explains that direct project financing accounts for only 2% of banks’ financial flows to the global coal industry. “98% of the problem remains as the new guideline does not stop Deutsche Bank from providing corporate loans and investment banking services to companies with aggressive plans for new coal-fired infrastructure,” says Schuecking.
“If the bank seriously wants to bring its portfolio in line with the Paris Climate Agreement, it needs to blacklist clients like India’s NTPC, South Korea’s KEPCO and others who play a key role in driving forward projects that could catapult us into a 4°C world.”
According to Yann Louvel, coal policy specialist of the NGO BankTrack, Deutsche Bank is now the 8th international bank to exclude direct financing of new coal mining projects and the 6th international bank to exclude financing of new coal plant projects.
“Many of Deutsche Bank’s European peers are, however, also beginning to exclude corporate financing of companies which base over 50% of their revenues or power generation on coal. This sets a clear bar for what Deutsche Bank needs to do next,” says Louvel.
Further information: Report: “Still coughing up for coal – Big banks after the Paris Agreement“ (esp. p. 6)
