Here’s Another Stance Against Coal Financing

Following in the footsteps of other major financial institutions, the Federal Bank of India is halting any financing of new coal-related projects, thus pushing the country towards a greener and cleaner future.

The Federal Bank of India wishes to enhance its environmental, social and governance portfolio by financing projects promoting renewable energy, energy efficiency, waste management, green buildings, and climate-smart agriculture.

The International Finance Corporation (IFC), the World Bank’s financial arm, developed its Green Equity Approach, a project the Federal Bank adhered to when the IFC acquired a 4.99% stake for $126 million. The idea behind the Green Equity Approach is to encourage clients to reduce coal exposure to zero – or near zero – by 2030. Therefore, any new coal mines – be it thermal or fired – or the expansion of existing ones are no longer eligible for financing.