The World Bank introduces new policies to reduce support for Asian-African coal projects

The World Bank's private sector has introduced new climate change conditions for its investments in commercial banks to encourage lenders to reduce their support
for coal projects in Africa and Asia.

The International Finance Corporation (IFC), which owns stakes in many of the largest commercial banks in emerging markets, hopes the restrictions will trigger other investors to exit the coal industry
.

Peter Cashion, head of climate finance at IFC, said: "I think this is an important milestone
.
Globally, our environmental policies and procedures have been adopted
by other development finance institutions and the market as a whole.
”

Under the new rules, IFC will no longer make equity investments
in financial institutions that do not have plans to phase out support for coal.
IFC will also take advantage of the conditions attached to existing and new equity investments to ensure that the banks involved reduce their coal exposure to zero
by 2030.

IFC wields considerable influence over commercial banks in emerging markets, which typically turn to Washington-based lenders for access to capital and help them build credibility
among investors.

Climate change campaigners welcomed the move, saying it sent a clear message to commercial banks and insurance that public finance
would no longer be provided to institutions that support coal projects.

Nezir Sinani, co-director of Recourse, a nonprofit based in the Netherlands, told Reuters in an interview, "We expect that different agencies will take a similar approach, which will have a huge impact
.
" ”