In a statement issued earlier this week, the National Australia Bank (NAB) announced that it will stop lending to new coal mining projects.
The move, which makes NAB the first of the “Big Four” Australian banks to develop a formal policy to stop financing new coal mining projects, is borne of the bank’s recognition that it has “an important role to play in the orderly transition to a low-carbon economy”.
According to NAB’s Sustainability Report 2017, 5% of its A$12.5 billion spending on the resources sector went to coal mining.
With this change in policy, NAB recognises that a transition to low carbon is critical to ensure Australians continue to have access to secure, reliable and affordable energy.
NAB will continue to support its existing customers across the mining and energy sectors, including those with existing coal assets.