EU banks cut financing for coal companies by 46% in four years

EU banks sharply reduced new financing for coal companies between 2022 and 2025, according to an analysis by environmental group Urgewald.

The amount provided for coal power plants fell from $4.8 billion in 2022 to $2.6 billion in 2025.

Across the 51 EU financial institutions examined, only 10 increased their financing for the coal sector over the four-year period.

In Germany, new loans and banks’ participation in bond sales for coal companies fell from €1.6 billion to €950 million.

Urgewald tracked loans and banks’ roles in bond sales, including financing for companies involved in coal mining, trading, transport and power generation.

Coal produces high carbon emissions, so reducing its use is important to limiting global warming under the Paris climate goals.

The analysis says banks’ self-imposed restrictions on coal financing are helping drive the decline; it gives no forecast of what happens next.