Italian Intesa Sanpaolo to stop financing coal
Italian bank Intesa Sanpaolo will stop financing the coal sector in all countries where it operates, the company said.
The bank yesterday approved a new policy that prohibits new credit lines to power firms in OECD countries having more than 30pc of their installed capacity coming from coal-fired plants. The limit is increased to 50pc for non-OECD countries. The ban also applies to companies involved in the realisation of new coal plants or mines, in extraction operations through "mountain top removal" techniques and in any acquisition that could increase the installed capacity above the settled thresholds. Existing credit lines will continue to be guaranteed and exceptions could apply to companies with medium and long-term phase-out plans, according to the policy.
Renewable firms that are part of larger groups that produce power from coal can also be financed, the firm said.
The bank is not the first financial company to decide to divest from the coal sector. Italian bank Unicredit announced a similar decision in November and other financial firms took similar measures last year. And Italian insurance company Generali announced its divestment from coal in November 2018. Italy plans to phase out coal from its power generation mix by the end of 2025.
Intesa Sanpaolo operates in 25 countries other than Italy, owning banks in east Europe, the Middle East and north Africa.
Related news posts
US-led carbon initiative misses launch date
US-led carbon initiative misses launch date
Houston, 23 April (Argus) — The Energy Transition Accelerator (ETA), a global initiative to use voluntary carbon market revenue to speed the decarbonization of developing countries' power sectors, has missed its planned Earth Day launch but continues to prepare for doing business. At the Cop 28 climate conference in Dubai last year, the initiative's leaders said they hoped to formally launch the program on 22 April 2024 . That didn't happen, but the program's leaders last week announced that the US climate think tank Center for Climate and Energy Solutions will serve as the ETA's new secretariat and that former US special presidential envoy for climate John Kerry will serve as the honorary chair of an eight-member senior consultative group that will advise the ETA's design and operations. The ETA plans to spend 2024 "building" on a framework for crediting projects they released last year. ETA leaders said the initiative could ultimately generate tens of billions of dollars in finances through 2035. The ETA also said the Dominican Republic had formed a government working group to "guide its engagement" as a potential pilot country for investments and that the Philippines would formally participate as an "observer country" rather than as a direct participant immediately. The ETA is still engaging Chile and Nigeria as potential pilot countries too, the initiative told Argus . The ETA is being developed by the US State Department, the Rockefeller Foundation, and the Bezos Earth Fund and would be funded with money from the voluntary carbon market. The initiative's ultimate goal is to allow corporate and government offset buyers to help developing countries decarbonize their power sectors through large projects that accelerate the retirement of coal-fired power plants and build new renewable generation. As of now, the ETA's timeline for future changes and negotiations with countries and companies is unclear. The program's goals are ambitious, especially at a time when scrutiny of some voluntary carbon market projects from environmentalists has weighed on corporate offset demand. By Mia Westley Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s Higashidori No.1 reactor faces further delays
Japan’s Higashidori No.1 reactor faces further delays
Osaka, 23 April (Argus) — Japanese utility Tohoku Electric Power has confirmed a further delay in reinforcement works at its 1,100MW Higashidori No.1 nuclear reactor, with its completion date unknown. The postponement in restarting the Higashidori reactor in northern Aomori prefecture would encourage Tohoku to secure replacement thermal fuels — such as LNG and coal — for an extended period, although the company is planning to resume another reactor in September. Tohoku previously aimed to complete the reinforcement work at Higashidori in the April 2024-March 2025 fiscal year. But the company needs more time to clear all the procedures for the assessment of basic earthquake ground motions and tsunamis, and to prepare for the plant inspection. It is still unclear when the company will complete the safety measures. The Higashidori reactor is undergoing inspections by Japan's nuclear regulation authority (NRA), based on stricter safety rules following the 2011 Fukushima nuclear disaster. The reactor will need to pass the safety checks and secure approval from local governments before restarting. Tohoku has three commercial reactors, including two at Onagawa in Miyagi prefecture and the Higashidori No.1 reactor, of which it applied to restart two. The 825MW Onagawa No.2 reactor has already cleared the NRA's safety inspections and obtained permission from local authorities to restart. The company is now planning to restart the Onagawa No.2 reactor in September . The possible return of the Onagawa No.2 reactor will help Tohoku reduce consumption of thermal fuels. The company used 2.76mn t of LNG in April-December 2023, up by 12pc from a year earlier, in the absence of all its nuclear reactors. But its coal consumption fell by 12pc to 5.68mn t during the period. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Colombia's electricity woes add to unrest against Petro
Colombia's electricity woes add to unrest against Petro
Bogota, 22 April (Argus) — Colombians took the streets of major cities and towns across the nation on Sunday to protest mainly against health, pension and labor changes, but potential power outages are also creating discontent. Authorities estimated that about 250,000 Colombians marched in widespread protests, sparked by changes in healthcare. Congress in April had rejected President Gustavo Petro's proposals in the sector, and the government the next day seized the two largest private-sector health insurers. Protesting healthcare workers say the government did this to implement changes through a back channel. "Regulatory noise and risk are likely to remain high amid announcements, proposals, and measures [that do not require congressional approval], aimed at changing the game's rules in strategic sectors," brokerage Credicorp Capital said. Colombians also protested being on the verge of electricity rationing like that in neighboring Ecuador as hydroelectric reservoirs remain at record-low levels. Several unions and other associations have long warned the Petro administration to take measures to offset the effects of the El Nino weather phenomenon. Electricity distributors last year called for allowing bills for energy purchased on the spot market to be deferred and for loosening price index rules, among other proposals. The national business council sent at least three letters to the president on the issue. At least nine separate letters calling for preparation to prevent blackouts were sent to the president and ministers. Several actions were only recently implemented . "There are no risk of electricity rationing in Colombia," former energy minister Irene Velez said in 2023. "We do not understand why some people are interested in generating panic." Government weather forecasts also overestimated rainfall expected for March, leading hydroelectric plants to use more water in the reservoirs than they otherwise would have, said director of the thermoelectric generation association (Andeg) Alejandro Castaneda. Reservoir levels stood at 29.5pc today, rising thanks to rains since 19 April, up from 28.75pc on 18 April. Electricity rationing is set to begin when reservoirs drop below 27pc, according to grid operator XM. By Diana Delgado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Baltimore opens third temporary shipping channel
Baltimore opens third temporary shipping channel
New York, 22 April (Argus) — A third temporary shipping channel has opened at the Port of Baltimore to allow more vessel traffic around the collapsed Francis Scott Key Bridge. Located on the northeast side of the main channel, the new passage has a controlling depth of 20-ft, a 300-ft horizontal clearance, and a vertical clearance of 135-ft. When combined with two other temporary channels opened earlier this month the port should be able to handle "... approximately 15 percent of pre-collapse commercial activity," said David O'Connell, the federal on-scene coordinator. The main shipping channel of the Port of Baltimore — a key conduit for US vehicle imports and coal exports — is expected to be reopened by the end of May, the Maryland Port Administration said earlier this month. The bridge collapsed into the water late last month when the 116,851dwt container ship Dali lost power and crashed into one of its support columns. Salvage teams have been working ever since to remove debris from the water and containers from the ship in order to clear the main channel. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more