RBS to cut lending to new coal and oil projects

Royal Bank of Scotland will no longer fund Arctic oil projects and has pledged to cut lending to firms profiting from coal as part of an updated energy policy meant to take a harder line on climate change.

The changes – which cover the mining, power and oil and gas sectors – mean the bank will not provide “project-specific finance” to new coal-fired power stations, new thermal coal mines, oil sands or Arctic oil projects, or those involved in “unsustainable” vegetation or peatland clearing.

It will also tighten restrictions on general lending to mining firms that source more than 40 per cent of their revenues from thermal coal, and power companies that generate over 40 per cent of their electricity from coal.

That marks a reduction from the former threshold of 65 per cent.

Its efforts have been commended by responsible investment group Shareaction.

Shareaction project manager Sonia Hierzig said: “The strengthened energy financing policies of RBS implement many of Shareaction’s recommendations for more robust management of climaterelated risks.

“They also make RBS the bank with the strongest energy sector policies out of the top five UK banks.”