Coal Loophole Undermines Bank Pledges to Cut Fossil-Fuel Funding

In the parts of the financial world that have spent the decade since the Paris Agreement trying to curb the most-polluting fossil fuel, there are actually two distinct types of coal — with two very different sets of rules.

Thermal coal, burned in power plants to generate electricity, faces restrictions from roughly 150 of the world's largest financial companies, according to Paris-based nonprofit Reclaim Finance, which monitors the pledges. Metallurgical coal used to create steel faces pushback from just 13 firms.