Glencore’s coal expansion fueled by European banks
- Cynthia Rocamora, Campaigner at Reclaim Finance, cynthia@reclaimfinance.org, +33781336160
- Helen Burley, international media, helen@reclaimfinance.org, +44 7703 731923.
- Cynthia Rocamora, Campaigner at Reclaim Finance, cynthia@reclaimfinance.org, +33781336160
- Helen Burley, international media, helen@reclaimfinance.org, +44 7703 731923.
European banks are still playing a critical role in supporting Glencore’s coal expansion, according to new analysis by Reclaim Finance (1) ahead of the company’s AGM next week. (2) Since January 2024, nine European banks have participated in 12 bonds totaling US$8 billion issued on behalf of the mining company, with the most recent in April 2025. This support reveals the loopholes in the banks’ policies on excluding support for new coal development (3). Reclaim Finance is calling on the banks to exclude all support for coal developers.
Almost half of the banks supporting Glencore US$8 billion bonds were European, according to the new analysis, including Barclays, BBVA, Commerzbank, Deutsche Bank, HSBC, ING, Santander, Standard Chartered and UBS. All of the bonds were for general corporate financing, which can be used to finance any of Glencore’s activities, including the planned expansion of 17 coal mines around the world, including Hail Creek, an open cut mine in Australia.
Coal expansion is at the heart of Glencore’s strategy with the company one of the world’s biggest coal exporters, producing thermal and met coal, which is used for steel-making (4). According to the International Energy Agency, coal production must decline by 2050 to reach net zero (5).
While European banks were the first to adopt coal policies globally, and all nine of the banks involved have a policy to restrict financing for thermal coal, loopholes in these policies allow them to continue financing Glencore’s expansion.
"European banks don’t seem to be able to break away from their toxic love affair with coal. Despite their public claims and climate commitments, their policies on ending coal finance are riddled with loopholes. Banks must introduce stronger policies. A coal policy that still allows a bank to finance a major developer like Glencore is nothing more than an empty promise," Cynthia Rocamora, industry campaigner at Reclaim Finance.
While HSBC, Standard Chartered and Barclays have policies to exclude financing for coal mine developers, a policy loophole allows general financing to companies like Glencore. This financing can be provided at the group level as long as it is not made available to coal developer entities inside the group. But there is no way of ensuring that financing will not contribute indirectly to coal expansion.
Similarly, Commerzbank and Santander have had policies excluding coal finance since 2022, but a loophole means that the policies only apply to new customers, allowing them to continue financing existing coal developers.
Reclaim Finance is calling on all the European banks to introduce stronger policies to exclude finance for all coal developers, ensuring they do not allow any financing for coal developers at the corporate level – regardless of whether they develop thermal or met coal – without any exceptions.
The report can be downloaded here.
Notes
- Financing Glencore: European banks still backing coal expansion, 21 May, 2025.
- Glencore’s AGM takes place on 28 May 2025.
- The nine banks identified are Barclays, BBVA, Commerzbank, Deutsche Bank, HSBC, ING, Santander, Standard Chartered and UBS.
- Met Coal, also known as metallurgical coal, is used to produce steel.
- A summary of thermal and met coal decline can be found in: ACCR, Appetite for risk: Glencore’s growing coal portfolio, March 2025, pages 15 and 16.
Re-published from the original press release on the Reclaim Finance website here.
