Banks urged not to fund coal power as government moves to underwrite projects
Activist groups warn providing finance for coal-fired power stations is inconsistent with banks’ commitments to Paris agreement
Environmental and progressive activist groups are urging Australia’s major banks and financial institutions not to fund new coal projects now that the Morrison government has flagged taxpayer assistance for power generation.
The Australian Conservation Foundation, GetUp, Greenpeace, Environment Victoria, the Australian Youth Climate Coalition, the Australian Centre for Corporate Responsibility and the Australia Institute wrote on Thursday to chief executives of the major lenders, warning the provision of finance for new coal, or retrofits of old coal-fired power stations, would be inconsistent with their public commitments to the Paris agreement.
The pressure on financial institutions follows the energy minister, Angus Taylor, calling for expressions of interest in new power generation projects to be underwritten by taxpayers, including, potentially, new coal builds or retrofits.
The government has made it clear that the new projects must be coal, gas, batteries or pumped hydro to be eligible for the government underwriting. A very tight timeframe is also proposed, with proponents having to put their hands up by January 23.
The environmental groups have told the banks the evidence is in on climate change, and an urgent response is required to combat the risks.
The groups have told the banking chiefs they risk providing finance for stranded assets if they finance new coal projects. “We strongly believe that the provision of finance from your financial institution for any new coal generation project or any retrofit to extend the life of an existing coal generator, would be inconsistent with your public position on climate change, counter to the concerns of your customers, and unmindful of the high risk of any new coal investment resulting in a stranded asset.”