Deutsche Bank to End Global Business Activities in Coal Mining by 2025

James Marshall
July 30, 2020

Deutsche said on Monday it has tightened its fossil fuels policy with a new framework for business activities involving oil, gas and coal.

Under the new policy, the bank will no longer finance any new oil and gas projects in the Arctic region or any new oil sands projects.

Deutsche Bank said that it would review all of its US and European coal power activities by the end of this year with respect to clients' diversification plans.

Crucially, the new policy would still allow Deutsche Bank to lend to some of the world's biggest coal miners, including BHP, Anglo American and Glencore, Urgewald said. Founded in 1870, the bank is based in Frankfurt, Germany.

In addition, Deutsche Bank has signed the so-called Equator Principles - a risk management framework for assessing the environmental and social risk of financing projects. The principles ensure that strict environmental and social standards are applied during the project development and construction process, including follow-up monitoring.

Deutsche Bank also said it will stop financing and capital markets transactions involving coal mining by 2025 after achieving a goal previous year to reduce its loan exposure to coal-fired power plants by 20 per cent.

Deutsche Chief Executive Christian Sewing said the new policy "sets us ambitious targets and enables us to help our long-standing clients with their own transformation".

The moves are part of a commitment to align its credit portfolios with the greenhouse gas reduction goals of the Paris Agreement, the bank said.

"When it comes to coal power companies, [Deutsche Bank] has not specified any concrete exclusion plans yet", the group stated. It plans to review all activities across the sector by the end of this year, with the aim of reducing its activities. Deutsche said it will not finance any new coal-fired power plants, and set guidelines on dealing with businesses that are more than 50% dependent on coal power - and only offer them financing "if they present credible diversification plans". This means that companies such as [German energy firm] Uniper are not affected.

He said an investment in Canadian energy is "a sustainable choice".

Other reports by Click Lancashire

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