German banking giant Deutsche Bank on Tuesday announced it would stop financing coal projects as part of its commitments under the Paris Agreement to tackle global warming.
“Deutsche Bank and its subsidiaries will not grant new financing for greenfield thermal coal mining and new coal-fired power plant construction,” it said in a statement.
Existing exposure to such projects will be gradually reduced, it added.
The lender said the decision was in line with the pledges it made at last year’s Paris climate conference, along with 400 other public and private companies, to help fight global warming.
A study last month by the legal group Arabella Advisors found that global funds were increasingly signalling plans to pull out of fossil fuel investments, one year on from the Paris climate agreement.
The accord, signed by 192 countries, is the world’s first universal, legally binding climate deal.
It sets out a plan to limit global warming to below two degrees Celsius (3.6 degrees Fahrenheit) over pre-industrial levels.
US President Donald Trump has vowed to withdraw his country, the world’s second-largest greenhouse-gas polluter after China, from the agreement.
The Paris Agreement (French: Accord de Paris) is an agreement within the United Nations Framework Convention on Climate Change (UNFCCC) dealing with greenhouse gases emissions mitigation, adaptation and finance starting in the year 2020.
The language of the agreement was negotiated by representatives of 195 countries at the 21st Conference of the Parties of the UNFCCC in Paris and adopted by consensus on 12 December 2015.
It was opened for signature on 22 April 2016 (Earth Day) at a ceremony in New York. As of December 2016, 194 UNFCCC members have signed the treaty, 127 of which have ratified it.
After several European Union states ratified the agreement in October 2016, there were enough countries that had ratified the agreement that produce enough of the world’s greenhouse gases for the agreement to enter into force. The agreement went into effect on 4 November 2016.