The Bank of England (BoE) will stop accepting bonds issued by companies deriving revenue from thermal coal mining as eligible collateral in its lending operations from October 2026. This policy reflects concerns that thermal coal faces growing financial risks as economies transition toward net-zero emissions.
The BoE stated that other financial institutions may also reconsider their links to the coal sector. This move could encourage commercial banks and other financial institutions to further reduce their exposure to the coal industry.
The BoE noted that thermal coal companies can be exposed to potential financial risks connected to the adjustment of the economy towards net zero.
This policy is stricter than that of similar financial institutions, such as the European Central Bank.
