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UniCredit to Stop Financing Thermal Power Projects

Power News - Published on Wed, 27 Nov 2019

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Italy-based bank UniCredit has promised to stop all lending for thermal coal projects by 2023, joining a growing group of financial companies striving to improve their green credentials. UniCredit said new projects in thermal coal mining and coal-fired power generation would be off-limits, setting strict commitments to reduce reliance on coal for customers of its corporate financing business. The measures take effect immediately but some existing financing deals will take until 2023 to run off. Presenting its sustainability targets a week before the unveiling of a new four year plan, UniCredit also said it would raise its exposure to the renewable energy sector by a quarter to more than nine billion euros by 2023.

Speaking at a press briefing where UniCredit handed out reusable metal bottles sporting the slogan "Do the right thing!", CEO Jean Pierre Mustier also said the bank would remove all single-use plastics from its buildings by 2023.

UniCredit also plans to derive 100 percent of the electricity for its offices in Italy, Germany and Austria from renewable sources - up from 78 percent last year.

Banks across the world have come under pressure from not just climate activists but also many investors and regulators to ease the transition towards a low-carbon economy. Financing for oil, gas and coal projects has come under particular scrutiny as climate scientists step up calls to reduce the world's deep reliance on fossil fuels to avert disastrous warming. Banks with assets equivalent to one-third of the global industry in September adopted new United Nations-backed responsible banking principles to fight climate change by shifting their loan books away from carbon.

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Posted By : Rabi Wangkhem on Wed, 27 Nov 2019
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