The cuts coincide with new emission laws about to be introduced to Parliament by the Federal Government that would commit Australia to a 43 per cent cut in emissions by 2030.

Queensland’s 10-year energy plan is also expected to be released in September.

Westpac, which has now joined the Net Zero banking Alliance, has previously announced it would exit thermal coal financing by 2030 but today announced further cuts to power generation financing below its 2021 levels and a 23 per cent reduction in the scope 1, 2 and 3 financed emissions by 2030.

It would cut the volume of emissions it financed in the oil and gas sector by about a quarter.

There was no reference to metallurgical coal project financing, which is the most common coal mining in Queensland, but the bank said there would be zero lending exposure to companies with greater than 5 per cent of their revenue coming from thermal coal mining by 2030.

The bank would only consider directly financing new greenfield oil and gas projects that were in line with the International Energy Agencies policy of net zero by 2020 or where the Australian or New Zealand governments determined that the project was for national energy security.

Chief executive Peter King said the bank’s new policy was about reducing its operational and financed emissions as well as helping its customers make the transition to net zero.

“With nearly 80 per cent of Westpac’s electricity portfolio in renewable energy we’re already funding the transition to a cleaner future,” King said.

“Now, by releasing sector targets for 2030 in emissions-intensive industries, we’re setting clear markers and will help our customers’ transition.”

The company has also set a target for an emissions intensity target for the financing of cement production. The new level was below the Australian average of CO2 intensity.