BoE bans thermal coal bonds as collateral
Analysis based on 15 articles · First reported Jul 19, 2026 · Last updated Jul 28, 2026
The policy signals increased regulatory risk for thermal coal assets, potentially reducing their attractiveness to banks and investors. It may accelerate divestment from coal-linked bonds and encourage stricter lending standards in the energy sector.
The United Kingdom — Bank of England announced it will no longer accept bonds linked to thermal coal as collateral for loans to commercial banks, effective October. The policy, quietly released in early June, aims to mitigate climate-related financial risks as the global economy transitions to net zero. It is stricter than policies of most Western central banks, including the European Union — European Central Bank. Climate advocacy groups like Positive Money and Reclaim Finance praised the move, though they noted implementation details remain unclear and restrictions could be extended beyond thermal coal. The policy comes amid a US-led backlash against green policies under President Donald Trump, which has led many financial firms to scale back climate commitments.
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