Between 2021 and 2025, European banks poured a shocking US$30 billion into companies developing Australian coal mines, fueling a massive climate bomb (1). New research from Reclaim Finance, published with BankTrack, Lock the Gate, Market Forces and urgewald finds that Barclays, Crédit Agricole and Deutsche Bank were among 19 European banks financing coal developers in the Bowen Basin, the world’s leading hub for metallurgical (met) coal. While all the banks have policies restricting finance for thermal coal, none apply any restrictions to met coal developers, even though the climate impact is worse (2). Reclaim Finance is calling on banks to end this double standard and exclude all support for metallurgical coal expansion
European banks are financing a potential massive climate bomb in Australia that could unleash up to 800 million tonnes of CO2 per year, more than twice Australia’s domestic emissions from energy and industry (3).
Nineteen European banks have channeled US$30 billion to met coal developers in the Bowen Basin between 2021 and 2025 (4), the world’s leading hub for met coal (5) – where more than 20 new met coal mines and projects are planned. Met coal is used for steel production, even though met coal expansion runs counter to climate goals (6).
Of the 19 European banks financing companies planning met coal expansion in the Bowen Basin, Crédit Agricole is the #1 financier, providing $4.5 billion in financing. Barclays ranks second at $3.4 billion, followed by Santander at $3.1 billion. Deutsche Bank, BNP Paribas, UBS and UniCredit are also among the biggest supporters (7).
If given the go-ahead, these projects will have disastrous consequences for local communities and nature, including on the Great Barrier Reef, with water pollution, habitat loss, and increased health impacts such as respiratory and circulatory disease (8).
European banks claim to have turned the page on coal, yet they are financing companies planning a massive expansion of met coal in the Bowen Basin which risks emitting more than twice Australia’s domestic climate emissions. These very same banks have adopted policies to restrict thermal coal financing due to its impacts. Met coal is coal, and there is simply no room for new met coal mines if we want a livable climate. If banks are serious about their climate commitments, they must close this loophole now and exclude all met coal developers.
Yann Louvel, senior policy analyst at Reclaim Finance
The analysis found that, while banks have increasingly adopted stringent restrictions on thermal coal, met coal remains largely exempt – even though met coal emits more carbon dioxide when burned and leaks more methane when mined (see 2).
While all of the 19 banks identified as financing met coal expansion companies in the Bowen Basin have a policy restricting finance for thermal coal, none of them has a restriction for companies developing met coal. Just four of the banks – BNP Paribas, Crédit Agricole, Société Générale and ING – excludes met coal mine project finance, but project finance is rarely used in the sector. Globally, just 12 of the 97 banks assessed in Reclaim Finance's Coal Policy Tracker restrict finance for met coal in some way (9).
Reclaim Finance is calling on banks to end this double standard on coal by introducing policies that rule out any support – direct or indirect – for metallurgical coal expansion.
