UK banks are accused of undermining wider European progress on coal finance, according to new analysis.
The dataset, compiled by environmental organisation Urgewald, tracks loans and underwriting from 744 commercial banks to companies operating across the coal value chain.
Between 2022 and 2025, the tracked banks provided an estimated $467 billion (£353.3bn) to the coal industry. Within this, UK-headquartered banks provided $8.3 billion (£6.3 bn) of this financing, which makes them the largest national source of coal financing in Europe.
Despite Barclays committing to net zero by 2050 and a 30% reduction in emissions intensity against its 2020 baseline, the company increased its coal financing by 34% between 2022 and 2025.
Meanwhile, even with its 2050 net zero commitments, HSBC’s coal financing more than doubled between 2022 and 2025, rising 107% from $200 million (£151m) to $414 million (£313m).
In contrast, banks in the European Union cut their coal financing by 46%.
Heffa Schücking, Director of Urgewald, said: “Coal financing is not disappearing – but it is concentrating in banks and markets where coal policies are either missing or weak.
“UK banks cannot claim climate leadership while continuing to increase their support for companies operating across the coal value chain. Barclays and HSBC should explain why their financing is moving in the opposite direction to the rest of Europe.”
Around Europe in comparison, 82% of BNP Paribas’ (France) energy-production financing was directed towards low-carbon energy in 2025, Santander (Spain) allocated €28.1bn (£24.2bn) to green homes and €174bn (£149.6bn) of green finance was raised or facilitated between 2019 and 2025, exceeding its 2025 target.
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