SOUTH African lender, Nedbank, had committed R50bn to renewable energy projects as part of its plan to back away from fossil-fuel financing, said Bloomberg News.
Citing the bank’s CFO, Mike Davis, the newswire said lending totalling R37bn had already been provided for clean energy developments. It had also secured deals in South Africa’s latest bidding round for renewable projects worth R12bn in business.
“As we transition as a country away from coal into renewable energy, the bank sees our policy supporting existing clients, but with a strong steer toward renewable energy,” Davis told Bloomberg News.
Banks have been taking steps to address climate change by limiting their exposure to energy projects that are most harmful to the environment, such as thermal coal mining, said Bloomberg News.
Investors managing $11 trillion have called on the world’s biggest banks to phase out financing of fossil-fuel companies and throw their weight behind the goals of the Paris climate agreement.
Nedbank will have cased financing new thermal coal mines by 2025, said Bloomberg News. It has also stopped financing oil and gas exploration and will stop financing oil production by 2035.
While the bank will continue funding renewable-energy projects involving oil and gas for a time, it plans to cut its exposure to fossil fuels entirely by 2045. Nedbank will report annually on progress in achieving its climate-relevant performance targets and update its policies to ensure it reaches its 2045 deadline, Davis said.