The Royal Bank of Scotland (RBS) corporate banking team in Newcastle has provided the funding for the take over of Coal4Enery by Hargreaves Services of County Durham which already owned 50% of the company. Hargreaves Services paid £9m to buy the other half from UK Coal.
Under the deal it will continue to market UK Coal’s domestic and industrial production for the next five years.
The company saw operating profit more than double to £22.1m, and revenues soar 69% to more than £400m in the year to May 31, along with significant growth in all four of its core divisions, a clear result of the UK’s increased dependence on domestic coal.
Calling itself “the oil & gas bank”, RBS is helping force open the carbon frontier, financing controversial projects in Nigeria, the Caucasus and Wales. Its involvement in Angolan and Azeri oil fields encourages corruption and conflict, while gas projects from the Arabian Gulf to the Gulf of Mexico threaten environmental destruction. The bank sees unconventional fuels such as tar sands – even more polluting than oil – as a key growth area.
With the recent boosts given to the coal industry from political leaders it is no wonder that RBS is once again financing these environmentally destructive companies and projects.
The Royal Bank of Scotland is covering up involvement in carbon emissions that amount to greater than those of the whole of Scotland, funding extraction projects that will run for 30 years, locking enormous emissions into our future.
Unlike other British banks, RBS claims it has no responsibility for the climate impacts of its lending to fossil fuels – while trying to claim credit for loans to renewables.
RBS is now publicly owned – we demand that our bank stop investing in fossil fuels.
£9m deal for coal supplier, Saturday 31st January 2009, The Northern Echo
Platform: RBS fuels climate chaos