UK Banks Continue Coal Financing Despite Climate Pledges, Report Finds

September 30, 2026 - 07:52

Major United Kingdom banks have maintained their financial support for the coal industry even as they publicly commit to climate goals, according to a new campaign report. The study reveals that Barclays and HSBC have been the most prominent lenders to coal-related companies since the war in Ukraine began, raising questions about the gap between stated environmental policies and actual lending practices.

The report examined financing activity across several UK banking institutions and found that coal companies continued to receive substantial credit lines and investment support. This occurred despite many of these same banks announcing restrictions on coal financing in recent years as part of broader climate commitments.

Campaigners argue that the ongoing support undermines global efforts to reduce carbon emissions and transition away from fossil fuels. They point out that coal remains one of the most polluting energy sources and that continued financing directly contradicts the goals set out in international climate agreements.

The findings have prompted calls for stricter regulations and greater transparency in how banks report their climate-related financing. Critics say voluntary commitments have proven insufficient and that binding rules may be necessary to ensure financial institutions align their lending with environmental targets.

Bank representatives have previously stated that they engage with energy companies to support their transition efforts and that financing decisions consider multiple factors, including energy security concerns following the conflict in Ukraine.