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Swiss Group Seeks to Ban Banks from New Fossil-Fuel Financing

Coal miners at the CSM black coal mine in Stonava, northeastern Czech Republic, on Monday, Oct. 14, 2024. An energy crunch due to geopolitical tensions pushed the government to reverse plans to completely halt mining in the region as coal-fired power plants producing some 40% of the country’s electricity. Photographer: Milan Jaros/Bloomberg (Milan Jaros/Bloomberg)

(Bloomberg) -- A multi-party group of lawmakers and public figures plans to launch an initiative seeking to ban Swiss financial institutions from funding or insuring new fossil-fuel mining, newspaper Schweiz am Wochenende reported.

The campaigners want to enshrine an “eco-friendly, sustainable orientation of the Swiss financial center” in the country’s constitution, according to the report published on Saturday. If they succeed in collecting 100,000 signatures for their cause, a national vote on the issue will be held within a few years.

Swiss banks and insurers should be prohibited from providing any services to tap new fossil-fuel deposits or expand the mining of existing ones, their proposal reads, according to the newspaper SaW. They want this to be enforced by a government authority.

The proponents — which include left, green, pro-business and conservative politicians — want to officially launch their campaign on Tuesday, the paper said.

While many banks subscribe to sustainability, their efforts often take a back seat if they clash with earnings targets. For example, UBS Group AG in March ditched a plan to phase out coal financing it had inherited from taking over Credit Suisse.

©2024 Bloomberg L.P.