Royal Bank of Scotland (RBS) has decided to halt financing for power companies that generate more than 40% of their electricity from coal (down from a 65% limit) – one of a suite of changes in its financing policy that will cut investment in fossil fuels.
The bank will no longer provide project-specific finance to:
• New coal fired power stations
• New thermal coal mines
• Oil sands projects
• Arctic oil projects
• Unsustainable vegetation or peatland clearance projects
In addition, RBS will not provide finance to mining companies generating more than 40% of their revenues from thermal coal (down from 65%).
Announcing the policy change, the bank said it had already reduced fossil fuel exposures and increased renewables investment in recent years. It said, “RBS now has sector-leading expertise in sustainable energy financing and has funded more British renewable energy projects than any other UK bank for the last six years running.”
Further reading
Low-carbon investment: Is green money the London edge?
Environmental Audit Committee to investigate green finance