When it comes to banks’ coal sector policies, many only restrict project financing and do not address corporate financing. Yet, fossil fuel companies tend mostly to raise finance at the corporate level (lending and underwriting with no specific use of proceeds): according to the Banking on Climate Chaos 2023 report, project financing accounted for only 4% of the total financing of fossil fuel companies between 2016 and 2022.
This is why it is an absolute necessity to adopt coal sector commitments targeting both project and corporate finance.