UK banks slammed over 'hollow' climate stance on coal

Britain's biggest banks have made "hollow" carbon-reduction pledges and are key financiers of coal, a campaign group said in a report Tuesday ahead of the UK hosting a climate summit.

Barclays, HSBC, Lloyds, NatWest and Standard Chartered provided $56 billion (46 billion euros) to coal firms over two years to late 2020, according to Reclaim Finance.

The British government, which will host UN global climate change summit COP26 in Glasgow in November, has itself pledged to hit net zero carbon emissions by 2050 to help meet its commitments under the Paris climate accord.

Britain's biggest banks must meanwhile back up their zero-carbon ambitions with concrete measures including an end to coal finance, Reclaim argued.

"While net zero announcements from UK financial institutions are multiplying, the coal sector is still attracting billions in financial support from UK banks and investors," read the report compiled along with German NGO Urgewald.

"When placed alongside the brutal reality of the climate and health impacts of the coal sector, these net zero pledges ring hollow."

London is the third biggest coal finance hub after New York and Tokyo, according to the report which used earnings and other publically available information.

"The findings of this report should serve as a wake up call to UK regulators, and financial company clients and shareholders, of the need for a renewed push to get UK financiers out of coal," the report added.

"UK banks, insurers and asset owners and managers need by the Glasgow COP26 in November to adopt robust coal exit policies."

Barclays topped the list of UK banks with more than $27 billion of coal sector finance over the last two years.

HSBC and Standard Chartered were also singled out for their heavy involvement.

Barclays countered that much of the research was out of date.

"The majority of the period covered in this research took place before we set our net zero ambition and before we started work to align our financing portfolio to the goals of the Paris Agreement in March 2020," it said.

HSBC said it would publish a plan later this year to outline its exit from the financing of all coal-fired power and thermal coal mining.

"Our policies prohibit the financing of new thermal coal mines and new customers dependent on thermal coal mining, and we have not provided project finance for new coal-fired power plants since early 2018," HSBC added.

Standard Chartered said it had made "major strides" in its coal policy in recent years and was continuing to review its positions "in light of shareholder feedback".

NatWest and Lloyds did not immediately respond to requests for comment.

French climate bill gets parliament OK despite green opposition
Paris (AFP) May 4, 2021 - French lawmakers on Tuesday approved a new law to limit climate change that President Emmanuel Macron hopes will burnish his green credentials ahead of elections next year, though critics say the measures fall short of what is necessary.

Macron's centrist majority assured, as expected, the bill's passage in the lower-house National Assembly, but it now faces a tougher vote in the Senate, dominated by conservatives.

Environmental groups have accused the president of failing to seize a chance for aggressive steps against global warming, especially as support grows steadily for green parties in many Western nations.

As lawmakers debated the text, around a dozen Extinction Rebellion activists chained themselves to gates at the National Assembly while others fired smoke bombs.

But Environment Minister Barbara Pompili rejected an "all or nothing approach" for battling climate change, telling MPs that a broad support base is needed if the nation is to change ingrained habits.

"Instead of grand statements or immense targets, which end up failing because they lead to a social revolt, we are putting demanding measures in place," she said.

The "yellow vest" protest movement that rocked France two years ago was initially sparked by a fuel tax that was intended as a climate-friendly measure but hit the pockets of car-reliant citizens.

- Not enough? -

Pompili has previously defended the climate law as "one of the biggest laws of the (president's) term".

Measures include bans on domestic flights under two and half hours that can be done by train, restrictions on renting badly-insulated properties, and the creation of a new "ecocide" crime to punish polluters.

The overall aim is to implement measures that will enable France to meet its target of reducing its greenhouse gas emissions by 40 percent compared with 1990 levels by a deadline of 2030.

Lobby groups such as Greenpeace have called it a "lost opportunity of Macron's term", while even the president's own environmental advisory council said it would "have a potentially limited impact".

It is also less ambitious than new targets for 55 percent cuts agreed at the EU level, and falls short of a German plan that was rejected last week by the country's constitutional court as "insufficient".

Climate change and protection of the environment are likely to be bigger themes in next year's presidential election than the last one in 2017, which Macron won while barely campaigning on the issue.

The main Green party in France made major gains in cities such as Strasbourg, Bordeaux and Lyon in local elections last year, mirroring a Europe-wide trend in favour of environmental groups.

- Protests -

The climate law has also been a test of what Macron billed as a more inclusive form of government that has seen members of the public invited to help draft the legislation.

After the "yellow vest" protests, he pledged to change his leadership style which was seen by critics as too centralised and removed from the wider public.

A "Citizens' Convention on the Climate", made up of 150 people chosen at random, was tasked with recommending measures that would enable France to meet its emissions targets.

But after seeing the legislation submitted to parliament, many members felt let down and accused Macron of reneging on a commitment to adopt their ideas.

Cyril Dion, a leading figure from the convention who was among the protesters outside the Assembly on Tuesday, denounced the efforts as "too timid".

The government counters that is trying to find a balance between reducing emissions while protecting workers and industry at a time when the economy has been battered by the Covid-19 pandemic.

"With the law, we are walking a fine line, making big changes while keeping it economically and socially acceptable," Pompili told the Financial Times last week.

French parliament to vote new climate law criticised by green groups
Paris (AFP) May 4, 2021
The French parliament is set to vote through a new climate change law on Tuesday intended by President Emmanuel Macron to reinforce his green credentials one year ahead of national elections. The draft legislation is almost certain to be approved in a first reading by the lower house of parliament, where Macron has a working majority, but it has been heavily criticised by environmental groups. Campaigners see it as too timid given the pace of climate change globally and accuse the French leader ... read more