FutureCoal distorts the facts to prolong the life of an industry with no social licence to operate
Coal lobbying body FutureCoal is deploying false narratives claiming that coal can be “sustainable”; including most recently in its “Fund Fair. Fund Equal” open letter to “global financial leaders” from newly-appointed FutureCoal chairman Mike Teke, of South Africa’s Seriti Resources.
Teke claims that, “in many policy and investment frameworks, coal is still excluded or unfairly treated”, and urges financial institutions to “fund coal, metallurgical and modern, low-emission thermal coal, fairly and equally”.
Civil society organisations have responded, highlighting how FutureCoal’s arguments distort the facts to justify an extended lifespan for an industry whose social and environmental licence to operate has expired.
FutureCoal’s “Fund Fair. Fund Equal” campaign is an appeal by those with a vested interest in delaying climate action for continued funding to an outdated, destructive industry whose existence is fundamentally misaligned with the achievement of a just transition.
The assertion that coal is treated “unfairly” by the finance community is wholly unfounded: it ignores the fact that fossil fuels already receive substantial financial support and leniency; including in the form of tax breaks, low-interest loans, and underpriced energy.
FutureCoal’s claims that technological innovation will transform the coal industry into a long-term clean energy source by addressing its major impacts at all points in the value chain are also incorrect. These claims fundamentally misrepresent both the current state of technology and the urgency of climate action, and ignore crucial technological and financial constraints that cast doubt on the viability of the proposed solutions.
Investors have a fiduciary responsibility to ensure the long-term viability of their portfolios. Continued investment in coal resources and infrastructure is an untenable risk to the global economy. Coal remains the world’s most polluting fuel. It poses the risk of stranded assets and amplifies the impact of physical climate risks. Allocating capital away from fossil fuel resources towards low-carbon alternatives is an existential necessity. Accelerating the phase-out of coal is an important part of this process and a significant transitional investment opportunity. Restrictions on thermal coal are a small step in the right direction in stewarding capital to build a low-carbon future.
We call on responsible investors to align their ESG policies and screening frameworks with climate science and continue to ensure coal is responsibly phased out of their investment portfolios. We also urge decision-makers to interrogate claims made by corporates and industry bodies which seek to delay and weaken climate action.
Download civil society’s response.
Signed by:
Centre for Environmental Rights
Highveld Environmental Justice Network (HEJN)