Opacity and Accountability: The Hidden Financial Pipelines Supporting New Coal

The report reveals that while designated project-specific funding for coal has declined, general corporate financing remains the primary driver of new coal infrastructure. It highlights a gap between the public net-zero commitments of many financial institutions and their actual lending practices, noting that many 'coal exclusion' policies contain loopholes that allow continued support for coal developers. The document provides data on the shrinking coal pipeline and identifies specific banks and asset managers that continue to provide loans, underwriting, or equity to companies building new coal plants and mines.

• The global pipeline for new coal power capacity has decreased significantly from 1,553 GW in 2015 to 280 GW in pre-construction and 176 GW in construction as of January 2022.
• General corporate funding is the dominant source of finance for new coal, far exceeding designated project funding. Between 2012 and 2021, only about US$174 billion of the estimated US$844 billion spent on coal plant construction was identified as designated project support.
• Many financial institutions have 'hollow' coal exclusion policies that fail to stop the flow of capital because they do not restrict general corporate funding to companies developing new coal projects. As of September 2022, only 26 of 300 analyzed financial institution coal policies were considered robust.
• Members of the Net-Zero Banking Alliance (NZBA) and Net-Zero Asset Managers Initiative continue to provide substantial support to coal developers. Between 2019 and 2021, 46 NZBA members provided US$202 billion in loans and underwriting to new coal project developers.
• Insurance is a critical enabler of coal infrastructure; without it, new projects cannot be built and existing plants cannot operate. While many insurers have adopted exit policies, some members of the Net-Zero Insurance Alliance still provide coverage or hold assets in coal developers.
• Annual expenditures on coal plant construction declined by 46% between 2012 and 2021, but approximately US$54 billion still flowed into coal plant construction in 2021 alone, with the largest shares in China (US$20 billion), India (US$7 billion), and other regions (US$26 billion).

APA

Global Energy Monitor (2022). Opacity and Accountability: The Hidden Financial Pipelines Supporting New Coal. https://globalenergymonitor.org/sites/default/files/migration/reports/Opacity-and-accountability-GEM-Oct2022_11.pdf

Chicago

Global Energy Monitor. Opacity and Accountability: The Hidden Financial Pipelines Supporting New Coal. 2022. https://globalenergymonitor.org/sites/default/files/migration/reports/Opacity-and-accountability-GEM-Oct2022_11.pdf.

Wikipedia

{{cite report |author=Global Energy Monitor |title=Opacity and Accountability: The Hidden Financial Pipelines Supporting New Coal |date=October 2022 |url=https://globalenergymonitor.org/sites/default/files/migration/reports/Opacity-and-accountability-GEM-Oct2022_11.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{globalenergymonitor2022opacity, author = {{Global Energy Monitor}}, title = {{Opacity and Accountability: The Hidden Financial Pipelines Supporting New Coal}}, institution = {Global Energy Monitor}, year = {2022}, month = oct, url = {https://globalenergymonitor.org/sites/default/files/migration/reports/Opacity-and-accountability-GEM-Oct2022_11.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }