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No more loopholes: HSBC closes door on new coal projects

(Eco Business, 27 Apr 2020) Two years ago, HSBC permitted itself to continue lending to new coal projects in emerging markets. Now, it has tightened its energy policy, but experts worry the bank could continue to back coal through other means than project finance.

The Hongkong and Shanghai Banking Corporation (HSBC) on Friday announced it would no longer finance new coal power stations anywhere globally, closing loopholes enshrined in its previous energy policy that allowed the London-headquartered lender to bankroll coal projects in certain developing nations.

Responding to shareholders’ questions online amid the ongoing coronavirus crisis, the finance group stated it had amended its policy aimed at phasing out coal support, removing the previous exemption of Bangladesh, Indonesia and Vietnam, which was slammed by activist groups in 2018 as experts warned no new fossil fuel power plant could be built if climate change was to be kept at bay.

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Eco Business, 27 Apr 2020: No more loopholes: HSBC closes door on new coal projects