{
  "title": "Following the Money: Who is Keeping Coal Alive?",
  "publication": "IMF Working Papers, November 1, 2024",
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  "summary": "The 2023 United Nations Climate Change Conference reinforced already existing pressure to transition away from fossil fuels, in particular for the most polluting source, coal.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Authors: Gregor Schwerhoff, Mouhamadou Sy\n- Publication date: November 1, 2024\n- Series: IMF Working Papers, Working Paper No. 2024/228\n- Pages: 28\n- DOI: https://doi.org/10.5089/9798400290053.001\n- Issue: 228\n- Volume: 2024\n- ISBN: 9798400290053\n- ISSN: 1018-5941\n- Central research question: Which types of banks continue to finance coal projects and how do coal phase-out commitments affect coal financing?"
    },
    {
      "heading": "Key findings",
      "content": "- Coal financing is becoming increasingly concentrated.\n- A portion of coal financing is concentrated in banks with a very high coal exposure.\n- Many coal loans have maturities much shorter than the remaining lifetime of coal assets, exposing equity holders to the risk of a more difficult loan rollover.\n- An econometric analysis shows that countries with a strong commitment to coal phase-out, fixed in national law for example, receive less coal financing.\n- Using an instrumental variable, the study identifies the negative relationship between strong coal phase-out commitments and coal financing as causal."
    },
    {
      "heading": "Data and methods",
      "content": "- Dataset: comprehensive dataset on bank loans for coal projects (described as comprehensive in the text).\n- Methods: econometric analysis with an instrumental variable to identify causal effects of coal phase-out commitments on coal financing."
    },
    {
      "heading": "Themes and subject areas",
      "content": "- Subjects listed: Balance of payments, Climate change, Climate policy, Environment, Financial markets, Financial sector development, Foreign direct investment, Non-renewable resources\n- Keywords listed: Asia and Pacific, climate change, Climate policy, coal, Coal, coal financing, Coal financing, divestment, Europe, Financial sector development, financing to the coal sector, Foreign direct investment, Global, Middle East, Non-renewable resources, phase-out commitment, stranded assets, Sub-Saharan Africa, United Nations climate change conference"
    },
    {
      "heading": "Implications highlighted by the study",
      "content": "- Concentration of coal financing in a subset of banks suggests potential systemic risks tied to those banks' exposures.\n- Shorter loan maturities relative to coal asset lifetimes create rollover risk for equity holders, implying potential stranded-asset dynamics if financing conditions tighten.\n- Legal or otherwise strong national coal phase-out commitments are associated with lower inflows of coal financing, and this relationship is identified as causal in the analysis.\n\nSource: IMF Working Papers — \"Following the Money: Who is Keeping Coal Alive?\" by Gregor Schwerhoff and Mouhamadou Sy, Working Paper No. 2024/228, November 1, 2024.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2024/11/01/following-the-money-who-is-keeping-coal-alive-556850"
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    "Authors: Gregor Schwerhoff, Mouhamadou Sy",
    "Published: November 1, 2024",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400290053.001",
    "Authors: Gregor Schwerhoff, Mouhamadou Sy",
    "Publication date: November 1, 2024",
    "Series: IMF Working Papers, Working Paper No. 2024/228",
    "Pages: 28",
    "DOI: https://doi.org/10.5089/9798400290053.001",
    "Issue: 228",
    "Volume: 2024",
    "ISBN: 9798400290053",
    "ISSN: 1018-5941",
    "Central research question: Which types of banks continue to finance coal projects and how do coal phase-out commitments affect coal financing?",
    "Coal financing is becoming increasingly concentrated.",
    "A portion of coal financing is concentrated in banks with a very high coal exposure.",
    "Many coal loans have maturities much shorter than the remaining lifetime of coal assets, exposing equity holders to the risk of a more difficult loan rollover.",
    "An econometric analysis shows that countries with a strong commitment to coal phase-out, fixed in national law for example, receive less coal financing.",
    "Using an instrumental variable, the study identifies the negative relationship between strong coal phase-out commitments and coal financing as causal.",
    "Dataset: comprehensive dataset on bank loans for coal projects (described as comprehensive in the text).",
    "Methods: econometric analysis with an instrumental variable to identify causal effects of coal phase-out commitments on coal financing.",
    "Subjects listed: Balance of payments, Climate change, Climate policy, Environment, Financial markets, Financial sector development, Foreign direct investment, Non-renewable resources",
    "Keywords listed: Asia and Pacific, climate change, Climate policy, coal, Coal, coal financing, Coal financing, divestment, Europe, Financial sector development, financing to the coal sector, Foreign direct investment, Global, Middle East, Non-renewable resources, phase-out commitment, stranded assets, Sub-Saharan Africa, United Nations climate change conference",
    "Concentration of coal financing in a subset of banks suggests potential systemic risks tied to those banks' exposures.",
    "Shorter loan maturities relative to coal asset lifetimes create rollover risk for equity holders, implying potential stranded-asset dynamics if financing conditions tighten.",
    "Legal or otherwise strong national coal phase-out commitments are associated with lower inflows of coal financing, and this relationship is identified as causal in the analysis.",
    "**Working Paper**"
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