Italian Intesa Sanpaolo to stop financing coal
Italian bank Intesa Sanpaolo will stop financing the coal sector in all countries where it operates, the company said.
The bank yesterday approved a new policy that prohibits new credit lines to power firms in OECD countries having more than 30pc of their installed capacity coming from coal-fired plants. The limit is increased to 50pc for non-OECD countries. The ban also applies to companies involved in the realisation of new coal plants or mines, in extraction operations through "mountain top removal" techniques and in any acquisition that could increase the installed capacity above the settled thresholds. Existing credit lines will continue to be guaranteed and exceptions could apply to companies with medium and long-term phase-out plans, according to the policy.
Renewable firms that are part of larger groups that produce power from coal can also be financed, the firm said.
The bank is not the first financial company to decide to divest from the coal sector. Italian bank Unicredit announced a similar decision in November and other financial firms took similar measures last year. And Italian insurance company Generali announced its divestment from coal in November 2018. Italy plans to phase out coal from its power generation mix by the end of 2025.
Intesa Sanpaolo operates in 25 countries other than Italy, owning banks in east Europe, the Middle East and north Africa.
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China seeks to achieve climate goals with new framework
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Genesis secures more gas to curb New Zealand shortages
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Q&A: Brazil's RNG needs regulated carbon
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