The move sees Standard Chartered joining its peers who have ended their support for the dirtiest of the fossil fuels midst rising concern on climate change.
On Tuesday, in a step aimed at reducing funding for dirty industries, Standard Chartered stated, it will stop financing new coal-fired powered stations, thus joining a growing ranks of financiers and lenders who are ending their support for the dirtiest fossil fuel midst rising concerns about climate change.
According to a statement placed on its website, Standard Chartered said, “save where there is an existing commitment, it will cease providing financing for new coal-fired power plants anywhere in the world.”
Burning coal to generate power produces large quantities of carbon dioxide and other so-called greenhouse gases responsible for climate change. An international agreement reached in Paris in 2015 committed signatories to cutting fossil fuel use.
The moves comes in the wake of many global banks exiting or cutting their support for the coal industry.
In April 2018, HSBC, Europe’s largest bank, said it will mostly stop funding new coal power plants as well as financing oil sands and drilling in the Arctic.
Last week, Japan’s Marubeni Corp, a major investor in coal -fired power stations, stated, it would not start any new coal power plant projects and will halve its generating capacity using the fuel by 2030.