The company announced its decision at a shareholder meeting in Lille, France.
Credit Agricole will not finance any mining companies which uses mountaintop removal technique to mine coal.
However, it said that it would continue finance companies that respect the environment.
Environmental groups have been pressurizing financial bodies to cut back funding to mining companies.
The announcement was welcomed by environmental groups, who previously forced Bank of America to cut back on mining related finances.
Bank of America previously announced that it will scale down financial support it provides to coal mining companies.
Reuters cited Credit Agricole CEO Jean-Paul Chifflet as saying: "Credit Agricole SA has taken the decision to no longer finance coal mining projects or companies specialised in this field."
