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HSBC Says It Will Phase Out Financing of Thermal Coal by 2040

  • Bank to stop thermal coal funding in European Union by 2030
  • HSBC can have the ‘biggest impact’ in Asia, CEO Quinn says
Coal-Fired Power Stations As Coal Prices Drop
Photographer: Chris Ratcliffe/Bloomberg

HSBC Holdings Plc is planning to phase out the financing of coal used for generating electricity by 2040, the latest bank to commit to ending support for the greenhouse gas-intensive fossil fuel.

The London-based lender will stop financing thermal coal in the European Union and countries belonging to the Organisation for Economic Co-operation and Development by 2030, and all other nations a decade later, according to a statement Tuesday. Clients related to the energy source are expected to publish transition plans and those that aren’t compatible with HSBC’s goal to reach net-zero by the middle of the century won’t be provided with new finance.