The European Green Deal and the associated regulatory changes concern real economy and the financial sector. Companies and banks implement new financial risk reporting and assessment standards. The green transition of the economy, in turn, calls for immense investment efforts. It requires hi-tech equipment, new infrastructure, as well as green energy transformation. Such investments consume a lot of fossil input materials, because we need steel, cement and copper to make PV farms, wind turbines or electric vehicles.

When financing the green transformation, do the banks take note of the entire chain making up the final product (from coal and ore mining all the way to the construction of solar or wind farms)? Do prudential and reporting regulations allow investors and supervisors to consider the specific nature of mining sector companies? What measures can those companies take to mitigate the new risks? Jastrzębska Spółka Węglowa, EU’s largest producer of coking coal based in Poland, can be taken as an example of a mining sector company that must face these challenges as a key player in the aforementioned chain.