RECOMMENDATIONS FOR BANKS COAL SECTOR

The report argues that the coal sector is not aligned with 1.5°C targets and poses significant financial risks, including over US$1.4 trillion in potential stranded assets. It recommends that banks immediately cease financing new coal projects and implement a timed escalation strategy to exit coal exposure by 2030 in OECD and European countries, and by 2040 worldwide. Key requirements for coal companies include the adoption of public, asset-by-asset phase-out plans and just transition strategies for workers and the environment.

• The global coal sector is expanding and remains misaligned with 1.5°C goals, with 2,400 plants in operation and 476 GW of new capacity in the pipeline, 61% of which is in China.
• Coal assets face severe financial risks; under a 1.5°C scenario, coal companies risk more than US$1.4 trillion in stranded assets, and 72% of plants would be unprofitable by 2040.
• To align with 1.5°C, the development of new coal mines must stop immediately, and all coal power plants must close by 2030 in advanced economies and by 2040 globally.
• Banks are advised to immediately end financial and advisory services for new coal mines, plants, infrastructure projects, or any retrofits that extend the life of existing projects.
• Banks should implement immediate restrictions on companies that derive more than 10% of revenues from coal mining, produce over 10 million tons of coal annually, or derive more than 10% of power production/capacity from coal (or have more than 5 GW of coal capacity).
• Banks should require coal companies to provide public phase-out plans featuring facility-by-facility closure dates and just transition plans, rather than accepting general net-zero commitments or SBTi-validated targets.
• Financial services to metallurgical coal must be terminated immediately for new mines, related infrastructure, and companies with expansion plans.

APA

Reclaim Finance (2023). RECOMMENDATIONS FOR BANKS COAL SECTOR. https://reclaimfinance.org/site/wp-content/uploads/2023/08/2_Recommendations-for-Banks_-Coal-sector_August2023.pdf

Chicago

Reclaim Finance. RECOMMENDATIONS FOR BANKS COAL SECTOR. 2023. https://reclaimfinance.org/site/wp-content/uploads/2023/08/2_Recommendations-for-Banks_-Coal-sector_August2023.pdf.

Wikipedia

{{cite report |author=Reclaim Finance |title=RECOMMENDATIONS FOR BANKS COAL SECTOR |date=August 2023 |url=https://reclaimfinance.org/site/wp-content/uploads/2023/08/2_Recommendations-for-Banks_-Coal-sector_August2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{reclaimfinance2023recommendations, author = {{Reclaim Finance}}, title = {{RECOMMENDATIONS FOR BANKS COAL SECTOR}}, institution = {Reclaim Finance}, year = {2023}, month = aug, url = {https://reclaimfinance.org/site/wp-content/uploads/2023/08/2_Recommendations-for-Banks_-Coal-sector_August2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }