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Macquarie has noted that he will stop funding coal projects in 2024 in a symbolic move that coincided with a bitter political debate in Australia over the withdrawal of banks from the sector.
The Sydney-based investment bank said on Friday that it expected its credit exposure to commodities to “run out” in three years as it outlined a climate policy to align its financing activities with global commitments to be made. zero net emissions by 2050. Macquarie will continue to fund oil and gas development.
“As countries make the transition to zero net, we recognize that much of the world will depend on oil and gas in energy economies and that until there are new commercially viable technologies, these fuels will play a continuing role in essential power supply, “said the bank.
Investor pressure on climate change risks has caused more than that 130 global lenders to outline plans to get out of the coal. ANZ Bank, Commonwealth Bank of Australia and Westpac, three of the four major Australian banks, have it they signaled their intention to stop coal financing, resulting in a struggle to obtain alternative funds for projects.
Macquarie’s exposure to coal fell to just A $ 100 million (US $ 77.8 million) during the year ended March, about half of what it was the year before.
The Australian parliament is conducting an investigation into the financial sector ‘s treatment of exporting industries after Australian resource minister Keith Pitt accused banks and pension funds of “corporate activism”.
“I am very concerned about retaining a legitimate industry like coal mining, which contributes significantly to the national economy and employs thousands of Australians,” he said.
Several coal miners have warned the committee that they have suffered due to a significant change in sentiment on the part of Australian lenders and insurers which has made their business increasingly difficult. Centennial Coal, which operates mines in New South Wales, said Asian lenders are unlikely to fill the gap, as they were generally only involved in Australian funding if local banks were involved.
“His view is that Australian banks would know Australian mining assets better than they do. If Australian banks do not participate, it is highly unlikely that Asian banks will fill the gap,” Centennial said in a statement.
He Port of Newcastle in New South Wales, the world’s largest coal terminal, secured a $ 515 million bailout at National Australia Bank when its existing lender ANZ avoided refinancing its debt last year.
NAB has said it will effectively reduce thermal exposure to zero by 2035.
“Australian lenders are running out the door despite objections from the Australian government because their international shareholders demand it,” said Tim Buckley, an analyst at the Institute for Energy Economics and Financial Analysis.
Macquarie made its announcement on climate finance, reporting that annual profits rose 10 percent to a record US $ 3.02 million during March, driven by a increased activity in its commodity division. The bank said it would commit to achieving net operating emissions by 2025.
Macquarie is also working with its asset management clients to manage its portfolios in line with the global 2040 net zero emissions target, said Shemara Wikramanayake, chief executive, who added that about 150 companies were involved. all over the world.
“[We] they are now setting targets for each of their assets, ”he added.
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