[Reader-list] banks that fund coal

[Nagraj Adve]

Coal study names top 20 'climate killer' banks

JP Morgan Chase tops list of institutions that have financed coal-mining
and coal-fired energy generation

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   - Fiona Harvey <http://www.guardian.co.uk/profile/fiona-harvey>,
   environment correspondent
   - guardian.co.uk <http://www.guardian.co.uk/>, Wednesday 30 November
   2011 16.14 GMT
   - Article history<http://www.guardian.co.uk/environment/2011/nov/30/coal-banks?intcmp=122#history-link-box>

 [image: A coal-fired power plant on the outskirts of Datong]
Financing coal is controversial, because it is the dirtiest fossil fuel and
responsible for billions of tonnes of emissions of carbon dioxide.
Photograph: Jason Lee/Reuters

Barclays <http://www.guardian.co.uk/business/barclay>, the Royal Bank of
Scotland <http://www.guardian.co.uk/business/royalbankofscotlandgroup> and
HSBC <http://www.guardian.co.uk/business/hsbcholdings> are among the top
banks that have lent billions of euros to the
coal<http://www.guardian.co.uk/environment/coal>sector – despite their
much-vaunted environmental credentials, a
new investigation<http://www.banktrack.org/download/bankrolling_climate_change/climatekillerbanks_final_0.pdf>has
found.

Financing coal is controversial, because it is the dirtiest fossil fuel and
responsible for billions of tonnes of emissions of carbon dioxide globally,
as well as other pollutants such as soot particles and mercury.

The list of top 20 institutions that have financed coal-mining and
coal-fired energy <http://www.guardian.co.uk/environment/energy> generation
reads like a roll-call of the world's biggest banks, with three American
banks – JP Morgan <http://www.guardian.co.uk/business/jpmorgan> Chase,
Citigroup and Bank of America – topping the list. Between them, these three
have provided at least €42bn to the coal sector since 2005.

Barclays took fifth place, having lent more than €11.5bn to big coal
companies in the last seven years, while RBS came in seventh having lent or
raised finance amounting to nearly €11bn over the period. HSBC just scraped
into the top 20, with €4.4bn of finance.

The research was compiled by a group of NGOs, including German
environmental group Urgewald <http://urgewald.org/>, the international
network BankTrack <http://www.banktrack.org/> and Earthlife Africa
Johannesburg <http://www.earthlife.org.za/>. It took experts more than
seven months to uncover the data, because banks do not declare it publicly
– many banks do not know how much they lend or raise finance to the coal
sector, or how many shares or other assets they own in coal. The figures
were found by examining the public reports of the biggest coal mining and
coal-fired power generation companies, and the true finance figures are
likely to be much higher.

The NGOs have labelled the banks "climate
killers"<http://urgewald.org/artikel/climate-killer-banks>because
their financing efforts have helped to expand coal in the past
decade. Many of the banks on the list subscribe to environmental
principles, such as cutting their own greenhouse gas emissions and
conducting environmental impact assessments on projects they finance.

Heffa Schücking of Urgewald said: "We chose to look into coal financing as
coal-fired power plants are the biggest source of man-made carbon dioxide
emissions and the major culprit in climate change. In spite of the fact
that climate change is already having impacts on the most vulnerable
societies, there is an abundance of plans to build new coal-fired power
plants."

Shücking said shareholders in the listed banks should be concerned, because
financing dirty fuels was increasingly risky in the face of the growing
threat of climate change, and increasing moves to limit greenhouse gas
emissions under national regulations.

She added: "If banks provide money for these projects, they will wreck all
attempts to limit global warming to 2C [which scientists regard as the
limit of safety]."

The figures include bank lending to coal companies, equity financing
raising for the companies, and other sources of financing such as bond
issues, as well as coal assets owned by the banks – including physical
assets such as coal mines or power plants, and shares in coal companies.
The researchers examined the annual reports of coal companies making up 44%
of global coal production, and 51% of global coal-fired energy generation,
between 2005 and September 2011.

Several banks told the Guardian they did not track how much they lent to
the coal sector, and that such lending did not affect their environmental
commitments.

RBS said: "Since 2006, RBS has lent more money to wind power projects than
to any other type of energy project. Just as society as a whole has to make
a transition to renewable energy sources, so will the banks that fund
energy production. RBS has been one of the most active banks in the world
in funding renewable energy so we are at the forefront of helping finance
that transition."

Mary Church, campaigner at Friends of the Earth Scotland, said: "Since the
bailout in 2008, it's taxpayers' money that RBS has been investing in this
devastating industry."

The top 20 'climate killer' banks

1 JPMorgan Chase

2 Citi

3 Bank of America

4 Morgan Stanley

5 Barclays

6 Deutsche Bank

7 Royal Bank of Scotland

8 BNP Paribas

9 Credit Suisse

10 UBS

11 Goldman Sachs

12 Bank of China

13 Industrial and Commercial Bank of China

14 Crédit Agricole / Calyon

15 UniCredit / HVB

16 China Construction Bank

17 Mitsubishi UFJ Financial Group

18 Société Générale

19 Wells Fargo

20 HSBC

• Data provided by Profundo