Banks, investors pour $52 billion into metallurgical coal expansion despite global climate pledges

A new report by the German environmental and human rights NGO Urgewald has revealed that banks and institutional investors have poured nearly $52 billion into the expansion of metallurgical coal, or “met coal,” despite global commitments to phase out coal financing. Between 2022 and 2024, banks provided $21.96 billion in loans and underwriting to met coal developers, while investors held $30.23 billion in securities of companies expanding coal mining operations. The report, Still Burning: How Banks and Investors Fuel Met Coal Expansion, warns that loopholes in coal exit policies have allowed continued support for coal used in steelmaking — a sector responsible for about 11% of global CO₂ emissions.

Urgewald researcher Lia Wagner said met coal contributes as severely to the climate crisis as thermal coal and accused financial institutions of “financing the destruction of our planet’s carbon budget.” The study found that 201 banks worldwide have financed metallurgical coal developers, with Chinese banks dominating the sector, accounting for 67% of total financing — about $14.7 billion — led by China Everbright, CITIC, and CSC Financial. The United States followed with $3.04 billion, driven by Jefferies Financial Group, which increased its coal funding by 400% since 2022.

European banks, despite proclaiming leadership in climate action, contributed $1.54 billion to metallurgical coal developers, including Deutsche Bank, BNP Paribas, Santander, and Crédit Agricole. Japan’s major financial groups — Mitsubishi UFJ, Mizuho, and SMBC — invested $1.22 billion, while Australian banks such as ANZ and Petra Capital added $644 million to domestic producers like BHP and Stanmore Resources.

The report also identifies the crucial role of institutional investors in keeping the coal industry alive. U.S. investment giants such as Vanguard, BlackRock, and State Street collectively hold more than $8 billion in securities linked to coal expansion. Japan’s Government Pension Investment Fund (GPIF) and Australia’s AustralianSuper are among the top global investors. GPIF, the world’s largest pension fund, has come under criticism for financing companies like Mitsubishi, Glencore, and Coal India, despite its claim of adopting a sustainability-oriented strategy.

India features in the analysis as one of the world’s largest steel producers and a major consumer of metallurgical coal. The report notes that India’s state-owned company, Coal India Limited, continues to attract foreign investments from funds such as GPIF and BlackRock. India’s steel industry remains heavily dependent on imported metallurgical coal from Australia and Indonesia, underlining how global financial flows directly influence its industrial emissions and climate trajectory.

Urgewald warns that continued financing of metallurgical coal projects undermines global climate targets and contradicts the Paris Agreement’s 1.5°C pathway. With the EU’s Carbon Border Adjustment Mechanism coming into effect and green hydrogen steelmaking technologies gaining ground, the report suggests the era of coal-based steelmaking is nearing its end. “The time for excuses is over,” Wagner said. “Financial institutions must close the metallurgical coal loophole once and for all — because coal is coal.”

The full report and the Metallurgical Coal Exit List are available at coalexit.org/mc.

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