Climate catastrophe: 67 NGOs call on banks to cease financing metallurgical coal

By Julia Hovenier, Helen Burley*
A global group of 67 organisations led by BankTrack and Reclaim Finance is calling on 50 of the world’s largest banks to end all financial support for new metallurgical coal production and expansion. Metallurgical coal represents 14% of the world’s coal. Unlike thermal coal, it is predominately used for steelmaking and is refined into coke, a material combined with iron ore in a blast furnace to produce primary steel [1].
“The green steel transition is already underway, but financial institutions continue to invest in metallurgical coal—a dead end for the global steel industry and for the climate,” said Julia Hovenier, Banks and Steel Campaigner at BankTrack. "To prevent stranded assets and avoid deepening the climate emergency with their dollars, banks must swiftly adopt policies that halt the expansion of metallurgical coal."
According to a recent report by Reclaim Finance, while thermal coal investments face scrutiny for health and climate risks, metallurgical coal investments persist with less attention from banks. Despite 250 financial institutions adopting policies against thermal coal since the 2015 Paris Agreement, only 9 have similar policies for metallurgical coal.
Since 2016, the world’s biggest banks have provided US $557 billion in finance to the 50 biggest developers in the metallurgical coal sector. In 2021, the International Energy Agency said existing mines were sufficient to meet coking coal demand through 2050. Despite this, there are plans for new production capacities of 406 Mt per year, corresponding to more than a third of total consumption in 2021.
Due to its continued reliance on coal, the steel sector is responsible for an estimated 11% of global CO2 emissions and almost 30% of all industrial emissions. From mining to processing to transportation to combustion, metallurgical coal unleashes massive amounts of greenhouse gas emissions. If the banking industry continues to allow “business as usual” practices to continue, coal-based steelmaking is projected to consume nearly 25% of the world's remaining carbon budget by 2050.
The letters sent to 50 banks today call on them to end financial support for projects and companies that are investing in new metallurgical coal production and expansion. Of the 9 banks that have policies restricting finance for metallurgical coal, including BNP Paribas, Société Générale, HSBC, Westpac, and Caixa Bank, only three have corporate level exclusions [2]. This is despite the fact that only 1.4% of financing for met coal was direct project-financing since 2016.
“The world must urgently move away from coal-based steel production, and financial institutions bear a crucial responsibility in accommodating this transition,” emphasised Cynthia Rocamora, Industry Campaigner at Reclaim Finance. “It’s time to stop all types of finance for all types of new coal projects—thermal and metallurgical included.”
You can access the letter here.

Notes

[1] Primary steel is steel made from iron ore. It’s differentiated from secondary steel, which is made by recycling scrap steel.
[2] Reclaim Finance’s Coal Policy Tracker was updated in November 2023 to reflect the metallurgical coal policies of banks. They found that only nine banks have any policies regarding metallurgical coal: La Banque Postale, Societe Generale, BNP Paribas, CaxiaBank, Cathay United Bank, Lloyds Banking Group, Macquarie, HSBC, and Westpac. Of those nine, only the following three have corporate exclusions: Lloyds Banking Group, Societe Generale, and Macquarie. However, Reclaim Finance has analysed them all as “weak” exclusions because they do not directly target developers of new metallurgical coal projects.
---
Julia Hovenier is Banks and Steel Campaigner, BankTrack; Helen Burley is with International Media, Reclaim Finance

Comments

Loktantra Bachao Abhiyan raises concerns over Jharkhand Adivasis' plight in Assam, BJP policies

By Our Representative The Loktantra Bachao Abhiyan (Save Democracy Campaign) has issued a pressing call to protect Adivasi rights in Jharkhand, highlighting serious concerns over the treatment of Jharkhandi Adivasis in Assam. During a press conference in Ranchi on November 9, representatives from Assam, Chhattisgarh, and Madhya Pradesh criticized the current approach of BJP-led governments in these states, arguing it has exacerbated Adivasi struggles for rights, land, and cultural preservation.

Promoting love or instilling hate and fear: Why is RSS seeking a meeting with Rahul Gandhi?

By Ram Puniyani* India's anti-colonial struggle was marked by a diverse range of social movements, one of the most significant being Hindu-Muslim unity and the emergence of a unified Indian identity among people of all religions. The nationalist, anti-colonial movement championed this unity, best embodied by Mahatma Gandhi, who ultimately gave his life for this cause. Gandhi once wrote, “The union that we want is not a patched-up thing but a union of hearts... Swaraj (self-rule) for India must be an impossible dream without an indissoluble union between the Hindus and Muslims of India. It must not be a mere truce... It must be a partnership between equals, each respecting the religion of the other.”

Right-arm fast bowler who helped West Indies shape arguably greatest Test team in cricket history

By Harsh Thakor* Malcolm Marshall redefined what it meant to be a right-arm fast bowler, challenging the traditional laws of biomechanics with his unique skill. As we remember his 25th death anniversary on November 4th, we reflect on the legacy he left behind after his untimely death from colon cancer. For a significant part of his career, Marshall was considered one of the fastest and most formidable bowlers in the world, helping to shape the West Indies into arguably the greatest Test team in cricket history.

Andhra team joins Gandhians to protest against 'bulldozer action' in Varanasi

By Rosamma Thomas* November 1 marked the 52nd day of the 100-day relay fast at the satyagraha site of Rajghat in Varanasi, seeking the restoration of the 12 acres of land to the Sarva Seva Sangh, the Gandhian organization that was evicted from the banks of the river. Twelve buildings were demolished as the site was abruptly taken over by the government after “bulldozer” action in August 2023, even as the matter was pending in court.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual.

Will Left victory in Sri Lanka deliver economic sovereignty plan, go beyond 'tired' IMF agenda?

By Atul Chandra, Vijay Prashad* On September 22, 2024, the Sri Lankan election authority announced that Anura Kumara Dissanayake of the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) alliance won the presidential election. Dissanayake, who has been the leader of the left-wing JVP since 2014, defeated 37 other candidates, including the incumbent president Ranil Wickremesinghe of the United National Party (UNP) and his closest challenger Sajith Premadasa of the Samagi Jana Balawegaya.

Will Bangladesh go Egypt way, where military ruler is in power for a decade?

By Vijay Prashad* The day after former Bangladeshi Prime Minister Sheikh Hasina left Dhaka, I was on the phone with a friend who had spent some time on the streets that day. He told me about the atmosphere in Dhaka, how people with little previous political experience had joined in the large protests alongside the students—who seemed to be leading the agitation. I asked him about the political infrastructure of the students and about their political orientation. He said that the protests seemed well-organized and that the students had escalated their demands from an end to certain quotas for government jobs to an end to the government of Sheikh Hasina. Even hours before she left the country, it did not seem that this would be the outcome.

A Marxist intellectual who dwelt into complex areas of the Indian socio-political landscape

By Harsh Thakor* Professor Manoranjan Mohanty has been a dedicated advocate for human rights over five decades. His work as a scholar and activist has supported revolutionary democratic movements, navigating complex areas of the Indian socio-political landscape. His balanced, non-partisan approach to human rights and social justice has made his books essential resources for advocates of democracy.

Tributes paid to pioneer of Naxalism in Punjab, who 'dodged' police for 60 yrs

By Harsh Thakor* Jagjit Singh Sohal, known as Comrade Sharma, a pioneer of Naxalism in Punjab, passed away on October 20 at the age of 96. Committed to the Naxalite cause and a prominent Maoist leader, Sohal, who succeeded Charu Majumdar, played hide and seek with the police for almost six decades. He was cremated in Patiala.

Search This Blog