August 23, 2017

Environmental concerns driving financiers away from coal projects

Mining companies planning to expand their coal mining operations or embarking on new ventures altogether will look have to rethink their strategies, if one is to read a lot in Credit Agricole’s recent move.

The French Bank has announced that it will no longer finance coal mining or miners due to environmental concerns at a shareholders meeting in former coal-mining city of Lille in northern.

Outgoing Chief Executive, Jean-Paul Chifflet explained to shareholders: “Credit Agricole SA has taken the decision to no longer finance coal mining projects or companies specialised in this field.”Elaborating more on the decision, Chifflet said the bank would cease lending for projects using mountain top removal, a technique which involves using explosives to expose coal seams.

Whilst Credit Agricole has slammed its door on financing coal mining, another French Bank, Societe Generale, has said it would only continue to fund coal mines that respected the environmental regulations, but will exclude open cast mines utilising mountain top removal.

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