Australian banks boost efforts to cut carbon emissions

Leading Australian banks are intensifying their efforts to cut carbon emissions and align with global climate targets by reducing their support for carbon-intensive projects.

The Commonwealth Bank of Australia (CBA), the nation’s largest lender, has committed to eliminating emissions from its loans to thermal coal mining customers by 2030.

Similarly, the National Australia Bank (NAB), the top business lender, announced that it will no longer finance new thermal coal mining projects or customers.

As of September 2023, NAB had already ceased corporate lending to thermal coal mining and project finance for such assets.

Australia’s Labour Party aims to increase the share of renewable energy in the country’s power mix to 82 per cent by 2030, up from about 40 per cent currently, and to cut carbon emissions by 43 per cent from 2005 levels. The long-term vision includes a renewable energy system supported by batteries and flexible gas generation.

The CBA highlighted the challenges of transitioning from ageing coal-fired power stations to renewable energy, noting that some planned coal retirements are being postponed to ensure grid reliability.

Both banks are also boosting financing for renewable energy projects as part of their broader decarbonisation strategies.

Attribution: Reuters

Subediting: M. S. Salama