UK banks are Europe’s biggest financial backers of the global coal industry, providing billions of pounds in funding for the climate-wrecking fossil fuel in the past four years, according to a report.
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banks → provide → report
The study found UK-based banks had provided $8.3bn (£6.2bn) in coal financing since Cop26 in Glasgow in 2021, when global leaders pledged to “phase down” coal use.
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leaders → find → use
This compared with $4.9bn from German banks and $3.4bn from French banks over the same period.
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This → compare → period
The sums provided by UK banks were largely driven by Barclays and HSBC, which both increased their coal financing between 2022 and 2025 despite high-profile climate and net zero commitments, according to the research.
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which → provide → research
It found Barclays’ coal financing increased by 34%, from approximately $1.2bn in 2022 to $1.6bn in 2025, while HSBC’s more than doubled from $200m to $414m.
The research was carried out by Urgewald, a Germany-based environmental and human rights organisation.
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research → find → Urgewald
It tracked loans and underwriting from 744 commercial banks around the world to companies operating across the “coal value chain” – those organisations involved in every aspect of the industry, from mines and power generation to logistics, exploration and trading organisations.
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It → track → organisations
Heffa Schücking, the director of Urgewald, said: “Barclays and HSBC should explain why their financing is moving in the opposite direction to the rest of Europe.”
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financing → say → Europe
A spokesperson for HSBC said the bank had committed to phasing out financing “for thermal coal-fired power and thermal coal mining” by 2030 in EU and OECD markets and by 2040 in other markets.
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bank → say → markets
They added: “These commitments support our ambition to align the financed emissions in our portfolio with net zero by 2050.
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commitments → add → 2050
As reported in our 2025 annual report and accounts, financed emissions from thermal coal mining fell by 94% between 2020 and 2024, while reported thermal coal financing exposures, calculated on the basis set out in our disclosures, fell from approximately $1bn to approximately $0.5bn over the same period.”
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exposures → report → period
A spokesperson for Barclays said many of the companies named in the report were “diversified energy or mining companies”.
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many → say → report
They said Barclays did not provide financing to companies that generated “more than 30% of revenues from thermal coal mining or power generation”.
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that → say → mining
“Barclays is financing an energy sector in transition, providing finance to meet current energy needs and also financing the scaling of clean energy,” the spokesperson said.
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spokesperson → finance → energy
“Over the past three years we have facilitated more than $300bn of sustainable and transition finance, including billions to cleaner energy projects, and invested millions into climate tech.”
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we → facilitate → tech
Urgewald defended its definition of companies in the “coal value chain”, saying it was widely accepted by many financial institutions.
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it → defend → institutions
Its report found that although some UK banks had reduced their coal financing, the overall financial flows from Britain-based banks to the “coal value chain” grew by 17% over the period.
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flows → find → period
This compares with a 46% reduction overall from EU banks.
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This → compare → banks
Globally, Urgewald found that between 2022 and 2025 bank financing for coal remained broadly flat, averaging about $117bn a year, despite the commitment made at Cop26 in Glasgow.
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financing → find → Glasgow
However, researchers said the headline figure concealed a growing divide within the banking industry, with Chinese and US banks increasing their funding.
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banks → say → funding
The study found Chinese banks accounted for 62% of global coal financing, providing $289bn, an 8% rise over the four-year period.
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banks → find → period
US banks provided $67bn, a rise of 23%, while Indonesian banks increased their coal financing by 64%, from $1.4bn in 2022 to $2.3bn.
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banks → provide → 2.3bn
By contrast, banks in the EU, Taiwan, Malaysia and Thailand significantly reduced their coal financing.
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banks → reduce → financing
Schücking, welcomed the decrease, saying it showed that a clear coal policy could “disrupt the flow of money to the industry”.
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policy → welcome → industry
But she cautioned that this progress was “being swallowed up” by rising coal finance elsewhere.
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progress → caution → finance
“Banks still funding coal cannot hide behind distant climate promises.
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Banks → fund → promises
They need policies that rule out new coal and bring their financing down now,” she said.
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she → need → financing
The Aporia
