Ensuring a rapid phase-out of the global coal industry requires immediate action from the financial industry. A small number of financial institutions have adopted policies that state they will require their coal clients to adopt phase-out plans, but provide little detail on which specifications these plans must meet. Evaluating whether coal phase-out plans are sufficiently ambitious, concrete and credible will be challenging, especially for financial institutions with large portfolios. It can be expected that many companies will put forward plans that are vague or inadequate.
This briefing therefore provides financial institutions with clear-cut criteria to thoroughly evaluate their clients’ coal phase-out plans, and closely monitor their implementation.
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