Bank of England to Stop Accepting Coal-Linked Bonds for Loans

The Bank of England has announced that it will cease accepting bonds associated with coal for its key loan arrangements, a decision set to take effect in October. This move has been welcomed by climate campaigners, who view it as a significant step towards reducing reliance on one of the most polluting fossil fuels.

Thermal coal, primarily used in power generation, has long been a focal point for environmental activists advocating for greener policies. The Bank's decision is expected to influence commercial banks to reconsider their holdings in coal-related assets, potentially leading to broader changes in the financial sector's approach to fossil fuels.

This ban aligns with the UK’s ongoing efforts to tackle climate change and transition towards more sustainable energy sources. The Bank of England's action reflects a growing recognition of the financial risks associated with climate change and the need for institutions to adapt to a low-carbon economy.

As the UK continues to navigate its energy policies, the implications of this decision may resonate beyond the banking sector, impacting investment strategies and the future of energy production in the country.

Source: www.theguardian.com – https://www.theguardian.com/business/2026/jul/19/bank-of-england-bonds-coal-loans-assets