JPMorgan to avoid financing coal projects

Tuesday March 8 2016

Peter Kithung’a, a resident of the Mui Basin in Kitui, points at the area rich in coal. The retirement of a senior government official has delayed the tendering process for coal mining in Kitui County. PHOTO | SALATON NJAU |

Peter Kithung’a, a resident of the Mui Basin in Kitui, points at the area rich in coal. PHOTO | SALATON NJAU | NATION MEDIA GROUP

By AFP
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Wall Street banking giant JPMorgan Chase said Monday that it would avoid financing new coal projects in advanced economies due to their contribution to global warming.

The bank's official Environmental and Social Policy Framework drew a line against supporting new or "greenfield" coal mines in high income countries, or new coal-fired power plants.

The Framework also said it will cut back credit support to coal mining companies over the medium term and only back new coal plants in lower-income countries that employ "ultra-supercritical steam generation technology."

"We believe the financial services sector has an important role to play as governments implement policies to combat climate change," the document said.

"We will therefore continue to provide financial support to those clients whose activities remain consistent with our own internal policies and government-led efforts to achieve an orderly transition toward less carbon-intensive economies."

The bank also set tough policies on lending that might involve forestry, exploitation of the Arctic, and said it would try to commit more financial support to protecting natural ecosystems.