DDeutsche Bank will no longer finance coal mining projects by 2025 at the latest. A new internal guideline encompasses both the stopping of loans to coal-fired power plants and capital market transactions such as the placement of bonds, Deutsche Bank announced on Monday. Germany’s largest credit institution has also committed to stricter rules for the oil and gas industry. “In this way, we will make our contribution to climate protection and support the EU’s goal of being carbon neutral by 2050,” said CEO Christian Sewing.
According to its 2019 annual report, Deutsche Bank has currently granted around 8.4 billion euros, or 2 percent of its total loans, to companies in the oil and gas industry.
As of now, the bank will no longer finance fracking projects in countries with extreme water shortages, new oil and gas projects in the Arctic and new oil sands projects. Deutsche Bank only wants to serve energy companies that are more than 50 percent dependent on coal in terms of existing energy production capacity or actual energy production if credible diversification plans are in place.
By the end of this year, it plans to review its customer relationships in Europe and the United States, in Asia from 2022. The environmental and human rights organization Urgewald said the plans were a good start, but did not go far enough. Deutsche Bank is lagging behind its competitors.