Study on financing: Banks get trillions for coal companies

1.5 trillion dollars: That’s how much money banks have raised for the coal companies in the past three years, according to a study by the environmental organization Urgewald. This is controversial in the industry.

Actually, many banks want to put an end to the coal business. But the figures from the non-governmental organization Urmacht speak a different language. The financial institutions gave around 400 billion dollars in loans to the coal companies very directly.

In addition, banks have helped the coal companies to raise fresh money from investors in the financial market with stocks and bonds – in the trillions.

German banks are also financing

Particularly involved: Japanese major banks and institutes from China. The companies received almost half of the money through just twelve banks. But German banks are also on the list. German institutes are said to have helped the coal companies to get around 18 billion dollars since 2019. According to Urgewald, these include Deutsche Bank and Commerzbank.

However, some banks feel that the organization has treated them unfairly. In some cases, she attributed joint loans from several banks to each bank equally, although some gave more, others less.

Prefer to get out of the coal business quickly?

Financial experts are also divided on how to assess the banks’ involvement. Some are calling on the banks to get out of the coal business as quickly as possible. Others also see credit and financing as an opportunity for banks to influence coal companies towards sustainability.