As the litany of those who want to have nothing to do with coal mining grows the influential international bank JPMorgan Chase and Company has became the latest big bank to pull back from coal.
The New York bank will no longer finance new coal mines around the world and will end support for new coal-fired power plants being developed in “high income” countries of the Organisation for Economic Co-operation and Development (OECD).
Bloomberg newsagency reports JPMorgan said in a policy statement on its website it was joining a growing list of financial institutions including Bank of America, Citigroup, Morgan Stanley and Wells Fargo and Company that have pledged to stop or scale back support for coal projects.
It’s part of a broader divestment campaign led by environmental groups including San Francisco-based Rainforest Action Network looking to move the world’s economies beyond fossil fuels.
The National Mining Association, which represents coal producers including Peabody Energy and Arch Coal, called JPMorgan’s changes “hardly a heroic gesture” given challenging market conditions for all fossil fuels.
The divestment campaign still delivers another blow to an industry already struggling through its worst downturn in decades.
Coal is under siege from cheap natural gas stealing market share at power plants, tougher emissions standards and slowing global demand.
Outside of rich countries, JPMorgan will back only coal-fired power plants that employ “ultra-supercritical” technology that is more efficient than conventional systems.
JPMorgan also plans to shrink its credit exposure in the “medium term” to companies that generate most of their revenue from coal mining and sales.
The bank said it expects its business to reflect the “decline of coal as an energy source.”
In a 2013 version of the statement, the bank said it would reduce its exposure to companies that engage in “mountaintop mining” in Appalachia.