UK Banks Lead Europe's $8.3bn Coal Financing Surge

UK banks have provided $8.3 billion in financing to the global coal industry since the COP26 climate summit in Glasgow in 2021. This figure significantly surpasses the contributions of German and French banks during the same period. The substantial sums from UK institutions are largely attributed to Barclays and HSBC, which have both escalated their coal financing between 2022 and 2025.

Barclays saw a 34% increase in its coal financing, while HSBC's more than doubled. This trend stands in contrast to the broader European banking sector, where overall financing for the coal value chain has decreased by 46%. Globally, bank financing for coal has remained relatively stable, averaging approximately $117 billion annually, despite climate pledges.

While European banks are reducing coal investments, institutions in China and the United States have increased their funding. Chinese banks accounted for 62% of global coal financing, with a notable rise, and US banks also showed a significant increase. Environmental groups urge banks to implement policies that halt new coal projects and immediately reduce existing financing.