ESG & Investing
HSBC, StanChart Explore ‘Transition’ Credits for Coal Clients
- Such credits remain controversial and are unregulated
- The instruments mean banks can hold on to coal clients
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HSBC Holdings Plc and Standard Chartered Plc are working on a new kind of financial instrument that’s designed to monetize the shift away from high-carbon assets.
The so-called transition credits would represent the difference between the emissions that would have been, had a coal-power client continued its business as usual, versus the lower level of emissions achieved by retiring a coal plant early.