Top Japan banks MUFG, SMFG join exit from coal mine funding

Peer Mizuho has already moved to end loans for extracting power plant fuel

20220401N coal mine

A lignite mine and coal-fired power plant in Germany. Japan's three largest banks are thought to have billions of dollars in outstanding loans for coal excavation. © Reuters

HARUKI KITAGAWA and SHIORI GOSO, Nikkei staff writers

TOKYO -- Japan's three largest banks will stop financing coal excavation for power generation, seeking to fight climate change by withdrawing support for the carbon-intensive fuel.

Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group said Friday they no longer will provide funding for new thermal coal mining projects. Mizuho Financial Group made a similar policy change last year.

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