(Bloomberg) — Financing options open to Australia’s coal operators dwindled further after another of the country’s largest banks said it would end almost all investment in thermal mines and power stations by 2030.
The move by Australia and New Zealand Banking Group Ltd. will add to the increasing difficulty miners face in funding new operations or expanding their existing assets in the nation, the world’s second-biggest exporter of thermal coal.
Financial institutions across the globe are bowing to pressure from shareholders and lobby groups to avoid investments in the fuel. Meanwhile, Australia’s mining lobby forecasts a booming market, on Tuesday saying that it expects Asian demand to rise 35% over the next decade.
As of now, ANZ will not take on any new business customers with thermal coal exposure amounting to more than 10% of total revenue, and will work with existing clients which have over 50% exposure to support their diversification plans, the bank said in its 2020 climate statement published Thursday.
It will also limit financing in power generation to natural gas and renewable projects by 2030.
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