Deutsche Bank says it will turn away from fossil fuels

29 Jul, 2020 01:01
source: Singularity Financial

Singularity Financial Hong Kong July 28, 2020 – Deutsche Bank said on Monday it would no longer fund oil sand or new energy projects in the Arctic region, as banks become more conscious of their carbon footprint, and contributions to climate change.

The German bank also said it would end all fracking projects in countries with short water supply, and halt global business activities in coal mining by 2025.

By the end of 2020, Deutsche Bank said it would review all planned business activities that are highly dependent on coal in Europe and the US.

A similar review of businesses in Asia is scheduled to begin in 2022, although this is expected to take longer owing to the region’s high dependence on coal power compared to much of the world.

The moves are part of the bank’s new fossil fuels policy that contribute to wider sustainability targets set in May this year.

The revamped fossil fuels policy provides a “strict framework” for financing and capital market transactions towards bank activities tied to coal, oil, and gas.

Chief executive Christian Sewing said the policy sets the bank’s “ambitious targets” and will help “the EU to achieve its goal of being climate neutral by 2050.”

Deutsche Bank issued its first own green bond, a bond tied to an environmental project, in June.