A new Urgewald dataset tracks loans and underwriting from 744 commercial banks to companies operating across the coal value chain. Between 2022 and 2025, these banks provided $467 billion in loans and underwriting to the coal industry. Financing remains highly concentrated: Chinese banks account for 62% ($289 billion), US banks for 14% ($67 billion) and Japanese banks for 6% ($28 billion) of global bank flows to the coal industry.

The 4 years covered in the dataset followed COP26 in Glasgow, where governments agreed to accelerate the phase-down of coal and financial institutions made high-profile net-zero commitments. The data shows that global bank financing for coal has remained broadly flat, averaging around $117 billion per year, since Glasgow. But this aggregate figure masks a growing rift within the banking industry.

"Coal financing is not disappearing – but it is concentrating in banks and markets where coal policies are either missing or weak." - Heffa Schücking, Director of Urgewald.

Key findings from our regional analysis:

Commercial banks from Europe and parts of Asia have significantly reduced their coal financing

Strong progress in Europe, but UK banks are dragging down the trend.

• EU banks have cut coal financing by 46%, from $4.8 billion in 2022 to $2.6 billion in 2025.
• Almost all European banks with meaningful coal exposure in 2022 reduced their coal financing over the review period. Notable exceptions are Barclays and HSBC, which both increased their coal financing between 2022 and 2025. UK banks remain the largest European source of coal finance, providing $8.3 billion since 2022, compared with $4.9 billion from German banks and $3.4 billion from French banks.

Banks from Taiwan, the Philippines, Malaysia and Thailand significantly reduced their coal lending and underwriting.

• Coal financing of Taiwanese banks dropped by 53% from $0.9 billion in 2022 to $0.4 billion in 2025. During the same period, Taiwanese commercial banks introduced or strengthened their coal restriction policies.
• Coal financing from Philippine banks fell by 73% from $0.8 billion in 2022 to $0.2 billion in 2025. Eight Philippine banks have adopted coal restriction policies in recent years.
• Malaysian banks’ coal financing fell by 88% from $0.7 billion in 2022 to just $0.1 billion in 2025. At least 2 major Malaysian banks have adopted coal restriction policies.
• Thai banks decreased coal financing by 74% from $0.8 billion in 2022 to $0.2 billion in 2025. Several Thai banks have adopted “no new coal” policies or set targets to reduce their coal exposure over time.

Coal financing of Japanese banks shows overall drop, but partially recovers in 2025.

• Although their coal policies are weak, Japanese banks’ coal financing dropped from $8.7 billion in 2022 to $5.8 billion in 2024. In 2025, coal financing rose again to $6.8 billion, but is still 20% lower than in 2022.
• 54% of Japanese bank financing goes to coal companies outside Japan, making their financing decisions significant for the international coal fleet, as well as Japan's domestic energy system.

Indian banks’ coal financing lower than in 2022.

• Coal financing of Indian banks dropped by 19%, from $3.5 billion in 2022 to $2.8 billion in 2025. As very few Indian banks have coal restrictions, it is, however, unlikely that this signifies a lasting trend.
• Total bank financing to Indian companies also fell, from $4.2 billion in 2022 to $3.1 billion in 2025.

Banks from China, the US, Indonesia and South Korea have increased their coal financing

China is not only the top financier of existing coal; it also dominates financing of coal expansion.

• Chinese banks account for 83% of global bank financing to companies with coal expansion plans. While China’s new 15^th Five-Year Plan calls for “promoting the peaking of coal”, it still allows consumption to grow in the power and coal-to-chemicals sector.
• China’s commercial banks increased their coal financing by 8% from $69 billion in 2022 to $75 billion in 2025. 99% of Chinese banks’ coal financing goes to companies headquartered in China. While a few Chinese banks have policies restricting coal finance abroad, only one Chinese financial institution restricts financing for domestic coal.

Major US Banks ramped up their support for the global coal industry.

• Since Glasgow, coal financing of US banks increased by 23% from $13.6 billion in 2022 to $16.7 billion in 2025.
• The top US coal financier is Bank of America. Its coal financing increased by 62% from $1.4 billion in 2022 to $2.3 billion in 2025. Next in line is JPMorgan Chase. Its coal financing rose by 45% from $1.5 billion in 2022 to $2.2 billion in 2025. Wells Fargo’s coal financing jumped from $1.2 billion to $1.9 billion over the review period, an increase of 59%. All 3 banks essentially gutted their coal and climate policies in recent years.

Indonesian banks - trying to fill the gap after international lenders retreated.

• After adopting coal restriction policies, many international banks ended their support for Indonesia’s coal sector. While Indonesian banks increased their coal financing by 64% from $1.4 billion in 2022 to $2.3 billion in 2025, this growth only partially offsets the gap created by the retreat of international funders.

South Korean banks doubled down on coal financing.

• Coal financing of South Korean banks grew from $0.8 billion in 2022 to $1.75 billion in 2025, an increase of 111%. This growth seems to mainly be driven by the financial needs of South Korea’s national power company, KEPCO.

This media briefing was originally published by Urgewald at this link.