BNP Paribas redraws finance from coal-based companies

BNP Paribas will phase out coal power finance. In declaring a strategy to achieve zero exposure to coal-fired electricity by 2030 in EU and OECD countries, and by 2040 in all other countries, the company will stop financing companies that would add, in any way, new electricity production capacities to their coal-fired power plants, whether through purchasing, the expansion of existing plants or the construction of new ones.

BNP Paribas will also only finance companies that have adopted a clear coal exit strategy, with a timeline that specifies the different steps that will lead them to no longer possess or operate coal-fired power plants within the same timelines.

A significant number of companies will be immediately excluded, and many others will only have until 2021 to reconsider their coal exit dates, align them with the exit goal and adopt a convincing policy to reach this.

BankTrack believes that this is a clear signal to companies such as the German energy company RWE to adopt a coal exit plan in line with the 2030 objective, or lose one of their primary sources of financing.

According to BankTrack BNP Paribas is now the 11th French financial actor to adopt a strong and robust exit strategy for electricity produced from coal.

    Share Story:

Recent Stories