HSBC to stop financing new coal-fired projects

It will stop investing in nuclear projects in conflict with international standards.

The multinational banking and financial services company HSBC has announced that it would stop funding new coal-fired power plants projects around the world apart from Bangladesh, Indonesia and Vietnam in order to pave the way for the global transition for a low-carbon economy. It will also stop supporting with greenfield oil sands projects and offshore oil and gas Arctic drillings in order to shun fossil fuels, a move similar to pledges made previously by ING and BNP Paribas.

Besides, the company will also stop financing new nuclear projects that are inconsistent with the International Atomic Energy Agency (IAEA) standards and new hydropower projects that don't fit the regulations of the World Commission on Dams. In 2011, HSBC decided to significantly restrict its support for new coal-fired power plants and effectively ceased financing them in 78 developed countries.

This article was originally published by Enerdata.