South African bank FirstRand is the latest financial institution to announce the end of loans for new coal-fired power stations and coal mines, simultaneously lowering the cap on its coal exposure.
The bank’s updated energy and fossil fuel policy sets 2026 as the year it will cease to fund new coal-related projects, making FirstRand one of only two big South African lenders to close the door on funding for such activities altogether.
Banks across the globe are bowing to pressure from shareholders and lobby groups to steer clear of coal investments.
Australian lenders have recently made headlines with Macquarie Group, Australia and New Zealand Banking Group (ANZ Bank), Commonwealth Bank of Australia and Westpac recently signaling their intention to stop coal financing.
The growing trend has left miners scrambling to source alternative funds for projects.
Yet, fossil fuel companies are worth US$18 trillion in listed equity, making up a quarter of the total value of global equity markets, according to Carbon Tracker’s most recent estimate. They account for US$8 trillion in corporate bonds, more than half the non-financial corporate bond market.
Unlisted debt — mostly owed to banks — could be four times greater, reaching almost US$32 trillion, the London-based think tank suggests.
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