OUR DEMANDS ON COAL
We only have 10 to 20 years to close thousands of thermal coal mines, power plants and infrastructure projects.
Every effort should be made to plan and operationalize their closure in the fairest possible manner, taking into account the rights of workers and communities. However, new coal projects are still being planned.
Reclaim Finance calls on banks, insurers and investors to adopt the following measures
to prevent the expansion of coal and to support a coal exit on time to limit warming to 1.5°C.
Zero tolerance for expansion
1. No more direct support for new or existing coal mines, power plants and infrastructure projects.
2. Divestment and exclusion from all financial services of companies developing new thermal coal mines, power plants and infrastructure projects.
3. Suspend the provision of financial services to companies that sell equipment for the construction of new coal projects or purchase existing coal assets. Lift this moratorium only after a commitment by such companies to cease such activities.
Exit starts now
4. Divestment and exclusion from all financial services for companies that either derive more than 20% of their revenues or electricity production from coal; produce more than 10 million tonnes of coal per year; or operate coal power stations with a capacity of more than 5 GW.
5. Commit to stop providing financial services and to reduce the exposure of financing, investment and insurance portfolios to the thermal coal industry to zero by 2030 at the latest in EU/OECD countries and by 2040 elsewhere.
6. Require all companies to adopt a plan for the phase-out of their coal assets by January 1, 2021, setting out a detailed timetable aligned with the objectives of the Paris Agreement and the dates indicated above in point 5. Suspend all financial services in case of failure to act and exclude the company one year later if the problem is not resolved.
7. Require all companies to undertake to close, not sell, their coal assets while anticipating the retraining of employees. Moreover, Require all companies not to buy back existing assets. Suspend all financial services when a company refuses to make these commitments and exclude companies that would sell or buy an asset for which no date of closure has been decided or if the closure date is not aligned with a 1.5°C trajectory.
The right tools, the right approach
8. Use the Global Coal Exit List to identify companies’ exposure and development plans in the coal sector.
9. Apply the policy to all financial services and all branches of the group. Do not put the policy full with exceptions. Only companies that meet the criteria as set out in point 6 can be subject to exceptions and receive financial services that are linked to and traceable to renewable energy infrastructure.
10. The number of companies subject to an exception must be publicly stated.