Investment bank and financial services holding company JPMorgan Chase is set to limit financing for global coal mining and coal-fired power as the company expands its commitment to a low-carbon economy.

The company’s proposal to reduce its funding of coal follows similar commitments made by several European banks and by the US bank Goldman Sachs.

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JPMorgan is also increasing restrictions on the funding of Arctic oil and gas projects.

In 2017, the company committed to facilitate $200bn in clean financing by 2025 and source renewable energy for 100% of its global power needs by 2020.

The additional steps announced now are aimed at addressing climate change and further promoting sustainable development.

The company said it will not provide lending, capital markets or advisory services to companies which obtain the majority of their revenues by extracting coal.

By 2024, it plans to phase out remaining credit exposure to such companies.

Additionally, JPMorgan will not provide project financing where the proceeds will be used to develop a new, or refinance an existing, coal-fired power plant.

In response to the company’s announcement, non-profit foundation As You Sow president Danielle Fugere said: “Funding of new coal, including coal-fired power plants, is incompatible with the goal of maintaining global temperature rises at 1.5°C.

“Yet, JPMorgan has not agreed to bring its full carbon footprint into alignment with the Paris goal. Until it agrees to do so, it’s fossil fuel funding remains a clear threat to the global goal of avoiding catastrophic warming.”

Last March, BNP Paribas Asset Management (BNPP AM) announced plans to stop investing in companies that are engaged in mining thermal coal, to tackle the growing threat of climate change.