Credit Suisse announced Wednesday that it will no longer finance any new coal-fired power plants as the financial sector faces increased calls to support global efforts against climate change.

"The bank has decided to no longer provide any form of financing specifically related to the development of new coal-fired power plants," Switzerland's number two bank said in a statement ahead of an investor conference.

Credit Suisse recognises its "share of responsibilities in addressing the challenges of climate change," it added.

The financial industry has come mounting presure to stop financing the construction of coal-fired electricity plants
The financial industry has come mounting presure to stop financing the construction of coal-fired electricity plants AFP / Barbara LABORDE

Addressing UN climate talks in Madrid this week, outgoing Bank of England Governor Mark Carney called for a "transition of the whole economy," including clear disclosures from companies about their environmental footprint.

Carney, newly appointed as the UN's Special Envoy for Climate Change and Finance, said companies "need to be rewarded or penalised if they are on the right or wrong side of the transition history."

Credit Suisse also pledged to widen its efforts to support "a low-carbon and climate-resilient economy."

Credit Suisse