Banking on Coal 2014

BankTrack, 2014

Banking on Coal 2014 is a research study produced by BankTrack. It presents an analysis of the portfolios of 92 leading commercial banks, particularly looking at their investments in the coal industry, both in the coal mining and coal power sectors. It is a sequel to the Bankrolling Climate Change (2011) report which focused on both coal mining and coal power, and the Banking on Coal (2013) which focused only on coal mining.

The following charts provide a general overview on some of the findings of the report.

The first chart shows the type of finance of the 93 coal companies covered. It reveals that the majority of coal financing is provided via investment banking through shares and bonds issues (54%), and a minority by corporate loans (46%).

The second chart illustrates the growth curve of coal financing for the 65 coal companies for which we have financial data from 2005 to 2013. Coal funding was more than fourfold more important in 2013 than in 2005, a 360% increase.

73% of the 373 billion euros of coal financing revealed by the financial research were funded by only 20 global banks : the list of the top 20 “coal banks” below. The top 2 global coal banks are unchanged from the 2011 ranking : JPMorgan Chase (21,520 million euros) and Citi (20,425 million euros), while RBS moved up from rank nulmber seven to number three. Chinese banks have risen in importance in the new ranking. These numbers reveal the hidden part of banks activities, far from their far-reaching climate commitments that BankTrack gathered on this page.

When gathered by country of origin, the following chart reveals that 62% of coal financing for the period 2011 to 2013, for which we have financial data for the 93 coal companies covered, comes from commercial banks based in only three countries: China (28%), US (23%) and UK (11%).

Download the full report here