Macquarie Group Revises Coal Policy, Emphasizing Pragmatic Climate Strategy| ASX 200

May 13, 2025 10:59 PM PDT | By Team Kalkine Media

Macquarie Group Revises Coal Policy, Emphasizing Pragmatic Climate Strategy| ASX 200 — Image source: shutterstock

Policy Updates for Metallurgical Coal

The changes to Macquarie’s coal policy specifically target metallurgical coal, which plays a crucial role in steelmaking. From November 2024 onwards, Macquarie began permitting balance sheet lending and equity investments for metallurgical coal mines, including projects aimed at acquisition, expansion, or development. These modifications represent a reversal of the bank's prior stance, which sought to phase out all coal-related exposure. The decision reflects Macquarie's new, more pragmatic strategy towards climate-related risks and transitions.

Distinguishing Between Coal Types

As part of its updated policy, Macquarie now differentiates between metallurgical and thermal coal. While the bank has confirmed it will continue to refrain from engaging in financing or advising on thermal coal activities, it has acknowledged the ongoing importance of metallurgical coal. This distinction underscores the limited alternatives available for the steel industry, which still heavily relies on metallurgical coal for production.

A Pragmatic Approach to the Energy Transition

Macquarie’s shift comes amid a broader reassessment of its involvement in carbon-intensive sectors. The updated coal policy aligns with the bank's view of a "managed, orderly and just" transition in industries that have significant emissions profiles. Macquarie stated that its approach allows these industries to continue operations while working toward emissions reductions.

This revised stance was also influenced by Macquarie's exit from the Net Zero Banking Alliance in 2024, making it the first large Australian bank to withdraw from the group. The report emphasized that Macquarie now focuses on adjusting its strategies to comply with emerging regulatory standards rather than adhering strictly to international alliances.

Long-Term Role of Oil and Gas

In line with its updated climate strategy, Macquarie also reiterated its commitment to supporting carbon-intensive industries, including oil and gas, which are seen as integral components of the global energy mix through at least 2030. The report emphasized that a shift away from these industries would not necessarily result in immediate emissions reductions, advocating for strategies that align with practical solutions to mitigate environmental impacts over time.

The changes implemented by Macquarie Group Ltd (ASX:MQG) reflect a nuanced approach to transitioning away from coal while acknowledging the realities of certain industries. Macquarie continues to maintain its stance on managing emissions and supporting sectors critical to global energy needs.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.