Bad News From Bank Of China, They Stop Financing Coal Projects Overseas

Illustration. (Photo: Doc. Antara)

JAKARTA - The Bank of China (BoC), the biggest global investor in coal-fired power plants, should end financing such projects off the mainland and support clean and renewable energy instead.

The statement, made in an open letter to the chairman of the state-controlled Board of Commissioners, Liu Liang, and signed by groups from 13 countries in Asia, Africa, and Europe, adds to growing criticism of China for funding coal-fired power plants. overseas, especially as part of the Belt and Road Initiative.

While China has said it will respect the right of local people to decide what kind of energy they need, the letter, which has been signed by organizations from several Belt and Road countries, shows growing opposition to coal even in developing countries.

The Bank of China's total external financing for coal-fired power projects since the 2015 Paris climate agreement stands at more than $35 billion, the most of any investor globally, and "does not match China's climate change ambitions", the letter said. that.

It said more than 130 financial institutions had decided to limit fossil fuel investment and urged the Bank of China to follow suit.

The Bank of China declined to comment on the letter. Its president Liu Jin said in late August that the bank would "gradually reduce" the share of total credit extended to coal projects over the period 2021-2025, but would also issue more loans for technical upgrades in the sector.

Julien Vincent, Executive Director of Market Forces, an Australian organization that campaigns against financing fossil fuels, said dozens of coal-fired power plants around the world would not run without bank support.

"The narrative about coal from China's business and financial leaders is clearly changing, but what really matters is action", he told Reuters.

China's financial institutions have gradually moved away from coal. The Industrial and Commercial Bank of China, the world's largest bank by assets, has pledged to draw up a "roadmap" for withdrawing from coal.

In recommendations published last week, a government advisory body also called on China to "limit and gradually stop" the use of public funds in overseas coal-fired power plant investments and urged state banks to make similar commitments.

According to research released Tuesday by European think tank E3G, 44 countries have committed to "no new coal", with 1,175 gigawatts of coal power capacity canceled since 2015.

It said a similar pledge by China would wipe out 55 percent of all newly proposed coal-fired power projects in the world.