UK Banks Lead Europe in Global Coal Industry Funding

UK banks have become the largest financial backers of the global coal industry in Europe, providing $8.3 billion in funding since the 2021 Cop26 summit. A report from the environmental organization Urgewald shows that while EU banks reduced coal financing by 46%, funding from UK-based banks grew by 17%.

Barclays and HSBC drove this trend. Barclays increased its coal financing by 34% to $1.6 billion by 2025, while HSBC's funding more than doubled to $414 million in the same period. Barclays defended its position by stating it only finances companies that generate 30% or less of their revenue from thermal coal. HSBC stated it aims to phase out thermal coal financing in EU and OECD markets by 2030.

Globally, coal financing remained flat at approximately $117 billion annually. While funding decreased in the EU, Taiwan, Malaysia, and Thailand, it increased among banks in China, the United States, and Indonesia. Urgewald director Heffa Schücking criticized the UK banks for moving in the opposite direction of the rest of Europe.