Following the launch of its Fund Fair, Fund Equal campaign in June, the Global Alliance for Sustainable Coal (FutureCoal) has issued an open letter to about 700 global finance, investment and government stakeholders urging them to fund coal fairly and equally.

The open letter, issued on September 2 by newly appointed FutureCoal chairperson Mike Teke, builds on an earlier call made by CEO Michelle Manook to Fund Fair, Fund Equal in applying the same investment approach to thermal coal as metallurgical coal.

During a media briefing on September 2, Manook explained that the letter was written after about 12 to 18 months of discussions with the finance, investment and insurance sectors.

“I can only hope that those conversations that have been going on for the last 18 months will now continue to translate into more realistic and better conversations around funding that really support those companies, particularly within those nations that are seeking to . . . operate in coal in a responsible way, no matter where they are on the value chain and no matter what their product is,” she said.

In the letter, Teke emphasised the strategic role of both metallurgical and modern, low-emission thermal coal in securing energy, strengthening multiple industries and driving sustainable economic growth.

Teke, who is also group CEO of South African energy company Seriti Resources, issued the letter to banks, insurers and institutional investors at a time when coal still remains the world’s largest source of electricity – 33% – and demand continues to rise.

In the letter, he noted that, despite the significant role played by coal in national and energy security, industrial resilience and sustainable economic growth, many policy and investments frameworks still exclude or treat coal unfairly.

“This approach ignores its irreplaceable role in industries like steel, cement and fertiliser, and its potential to deliver significant emissions reductions when paired with modern technologies,” Teke said in the letter.

FutureCoal noted that, in 2024, global coal consumption reached a record high, with over $130-billion invested by commercial banks across Asia, the US and Europe.

“The reality means coal cannot be excluded from just energy transition or global growth and economic development discussions. It powers industries, protects jobs and supports national development strategies, especially in regions with limited baseload alternatives.

“I have called on all my coal value chain peers to ‘come out of the closet’ and support this vital resource and I ask the same of the finance, investment and insurance stakeholders,” Teke said in a media release.

The alliance explained that the letter reinforces its Sustainable Coal Stewardship (SCS) framework, promoting responsible coal use across the value chain, including advanced mining and combustion technologies and beyond-combustion applications that convert coal into high-value products.

“There is no practicable reason or excuse not to fund coal responsibly under the SCS framework. It is a pragmatic pathway which addresses both economic and environmental solutions across the value chain.

“Let’s bring back equanimity in policy- and decision-making,” Teke continued in the release.

He clarified that the goal is not to replace renewables but to ensure that all resources, including coal, contribute to economic growth, environmental progress and long- term energy security.

“The energy transition must be inclusive, pragmatic and fact-based,” Teke said in the letter.

He urged institutions to be bold, informed and united in ensuring coal’s responsible and effective use for the global community.

“I urge you, as leaders in banking, investment and insurance, to be bold, informed and united in ensuring that this vital resource continues to serve the global community responsibly and effectively,” he wrote.