Still Burning is a network working against the global hard coal infrastructure.

8.1 Where does the money come from?

by | 30 Mar, 2021 | Financial System

Providers of capital are key to the planning, permitting, development, and operation of coal mines and the construction of power stations. But it is often very difficult to detect which financiers are supporting the climate-damaging projects of the coal industry. The international hard coal business is financed by a complex network of banks, insurers, funds, companies, and government institutions. Europe’s largest coal investors and lenders include the Norwegian State Pension Fund, Crédit Agricole, Deutsche Bank, UniCredit, Santander, and Barclays. 

In 2020, a study by Europe Beyond Coal showed that the eight biggest European coal companies – RWE (Germany), PGE (Poland), EPH and ČEZ (both Czech Republic), Enel/ Endesa (Italy/Spain), and Fortum/Uniper (Finland/Germany) – have received €7.9 billion in lending since 2018. These eight companies make up half of all coal-based CO2 emissions in the EU!

At the end of 2019, the top four European investors held five billion euros in shares or bonds in the eight coal companies listed above – led by the Norwegian Government Pension Fund, which held €1.5 billion in shares and bonds, Crédit Agricole with €1.4 billion, Allianz with €1.1 billion through third party assets, and Deutsche Bank with one billion euros.

In addition to these loans, financial institutions invest in coal companies’ shares, buy coal company bonds, and underwrite services. The top ‘creditors’ of European coal companies are UniCredit, BNP Paribas, Barclays, and Société Générale.

Continue Reading

8.2 Insuring climate catastrophe

8.2 Insuring climate catastrophe

Insurance companies also play an important role in the financing structure of the value chain around hard coal. In the debate on the climate crisis they are often regarded as ‘saviours’, as they insure against financial losses caused by extreme weather events. But...

8.3 Government support

8.3 Government support

Many European governments continue to support and subsidise coal mining through a number of different mechanisms. They include subsidies for capacity mechanisms that are meant to guarantee security of energy supply when needed, in return for additional payments to...

8.4 Bettercoal

8.4 Bettercoal

Bettercoal – founded by RWE, Eon, Vattenfall, Électricité de France, GDF Suez, ENEL, and Dong Energy in 2012 – is an initiative of several European energy companies which has set itself the supposed goal of a responsible global coal supply chain through guidelines for...

Share This