National Australia Bank (NAB) has announced it will halt all lending for new thermal coal mining projects, becoming the first major Australian bank to phase out funding for this sector.
According The Guardian, NAB will continue providing finance for coal projects already on its books.
“While we will continue to support our existing customers across the mining and energy sectors, including those with existing coal assets, NAB will no longer finance new thermal coal mining projects,” the bank said in a statement.
It appears other major Australian are following suit.
The Commonwealth Bank said it would not fund new, large coal projects, saying its support for coal would continue to decline as Australia transitioned to a low-carbon economy.
ING promised to phase out coal within a decade and has committed to stop funding any utility company that relies on coal for more than 5 per cent of its energy.
ANZ and Westpac have both limited lending to new coal projects under certain conditions.
The World Bank also announced it would no longer finance upstream oil and gas after 2019, in line with the Paris Agreement.