Key facts
- UK banks provided $8.3 billion in coal financing since COP26 in 2021.
- German banks provided $4.9 billion and French banks $3.4 billion in the same period.
- Barclays' coal financing increased by 34% from $1.2 billion in 2022 to $1.6 billion in 2025.
- HSBC's coal financing more than doubled from $200 million to $414 million.
- Chinese banks accounted for 62% of global coal financing, providing $289 billion.
- US banks provided $67 billion in coal financing, a 23% increase.
UK banks are the largest financiers of the global coal industry in Europe, providing billions of pounds in funding over the past four years, according to a report by Urgewald. The study found that UK-based banks supplied $8.3 billion (£6.2 billion) to the coal sector since the COP26 climate summit in Glasgow in 2021, a period when world leaders committed to "phase down" coal use. This figure significantly surpasses the $4.9 billion from German banks and $3.4 billion from French banks during the same timeframe.
The research highlights Barclays and HSBC as key drivers of the UK's coal financing. Despite stated climate commitments, Barclays' coal financing increased by 34%, rising from approximately $1.2 billion in 2022 to $1.6 billion in 2025. HSBC's financing more than doubled, growing from $200 million to $414 million over the same period.
Urgewald's report tracked loans and underwriting from 744 global commercial banks to companies involved in all aspects of the coal value chain. Heffa Schücking, director of Urgewald, questioned the direction of financing from Barclays and HSBC, stating they should explain why their actions diverge from the rest of Europe.
HSBC stated its commitment to phasing out financing for thermal coal power and mining by 2030 in EU and OECD markets, and by 2040 elsewhere, aligning with its net-zero ambition by 2050. The bank reported a 94% fall in financed emissions from thermal coal mining between 2020 and 2024, with reported financing exposures dropping from about $1 billion to $0.5 billion in the same period.
A Barclays spokesperson noted that many companies in the report are diversified energy or mining firms and that the bank does not finance companies deriving more than 30% of revenue from thermal coal mining or power generation. The spokesperson added that Barclays finances the energy sector's transition, supporting current needs and scaling clean energy, with over $300 billion facilitated in sustainable and transition finance in the past three years.
Urgewald defended its definition of "coal value chain" companies, stating it is widely accepted. The report also indicated that while some UK banks reduced coal financing, overall flows from Britain-based banks grew by 17%, contrasting with a 46% reduction by EU banks. Globally, coal financing remained largely flat at around $117 billion annually between 2022 and 2025, masking an increase in funding from Chinese and US banks. Chinese banks provided 62% of global coal financing ($289 billion), a rise of 8%, while US banks increased funding by 23% to $67 billion.