Citigroup Inc and Morgan Stanley may still invest in coal-fired power plants and coal technologies after signing an agreement on so-called "carbon principles" with JPMorgan Chase & Co.
"It doesn't necessarily preclude us from investing in coal-fired plants or companies that actually build these plants," said J. Nicholas McKee, Citigroup managing director and group head for North American utilities.
The guidelines, developed with environmental organizations and power companies, are designed to help lenders wanting to finance energy projects in the United States assess the risk of carbon dioxide emissions regulations.
Governments worldwide are imposing limits on emissions from energy, transportation and other industries, Bloomberg News reported.
"Coal will be a part of the answer at the end of the day," said David J. Nastro, Morgan Stanley managing director.
"We are willing to finance coal even though we're signatories to these carbon principles, "Nastro said.
"The point is we've asked the right questions and are trying to quantify the impact."