Australia's NAB targets effective zero exposure to thermal coal by 2030

National Australia Bank NAB, the country's second-biggest lender, said on Friday it was targeting an effective zero exposure to thermal coal mining by the end of this decade as part of its plan to achieve net zero by 2050.

Banks across the globe have come under pressure for their ties with fossil fuel projects as calls for a shift towards greener economy intensify.

Demand has also intensified for lenders to raise investment in clean energy projects and support clients cease conventional energy assets.

NAB expects to have an effective zero exposure to thermal coal mining by 2030 except for any residual performance guarantees to rehabilitate existing coal mines.

Its current exposure at default to the sector stands at A$700 million ($477.54 million), 0.09% of the bank's total lending exposure.

"NAB will support customers to accelerate decommissioning of coal and gas-powered assets, while increasing financing to renewables – currently 73% of our lending to power generation," NAB Chief Climate Officer Jacqueline Fox said.

The bank has also capped its oil and gas exposures and set targets to reduce emissions from lending to the sector. It has set a target of a 21% fall in absolute emissions by 2030 for the sector.

Last week, Australia and New Zealand Banking Group ANZ, the country's no. 4 lender, set aside A$100 billion ($67.63 billion) in funds to help customers lower carbon emissions by 2030.

($1 = 1.4658 Australian dollars)