- The Bank of England announced in June 2026 that it will no longer accept bonds associated with thermal coal operations as collateral for key loan arrangements starting in October.
- The central bank stated that thermal coal companies face financial risks connected to the economic transition toward net-zero emissions, making these assets too risky for its balance sheet.
- The policy change will affect commercial banks in the United Kingdom, including Barclays, Lloyds, NatWest, and HSBC, which use these bonds as collateral to secure loans from the central bank.
Quotes
“It's a strong signal from a central bank, and to the market as well.”
“can be exposed to potential financial risks connected to the adjustment of the economy towards net zero”