Societe Generale to end coal power support

From next year Societe Generale (EPA:GLE) will no longer provide financing for coal-fired power projects or related infrastructure anywhere in the world, while it will expand its work in support of renewables.

The French bank said today it will also scale back its outstanding coal loans, aiming to cut to 19% by 2020 the share of coal in power generation capacity financed by it. The decision has been taken in line with efforts to limit global warming to two degrees Celsius.

Societe Generale pointed out today that, so far this year, it has been involved in all offshore wind financings in Europe. Such deals include the financial close of the 396-MW Merkur offshore wind farm in Germany and the 309-MW Rentel project in Belgian waters.

“With a long-standing and established presence in the energy sector, the bank intends to be a major financer of the energy transition and undertakes to support its clients in this necessary area,” said Severin Cabannes, Deputy CEO.

A year ago, Societe Generale ended project financing for coal mining and for coal power generation in high income OECD countries. Also last year it said it would double renewables project financing, targeting EUR 10 billion (USD 11bn) of funding allocated to the sector by the end of the decade.

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