Page 12 - AsiaElec Week 37 2021

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Bank of China urged to

give up coal financing

CHINA BANK of China (BoC), one of the world’s larg- Its president, Liu Jin, said at the end of August
est investors in coal-fired generation, has been that the bank would “gradually reduce” the share
urged by a group of green NGOs to abandon coal of total credit extended to coal projects during
funding and switch to backing clean and renew- the 2021-2025 period, but would also issue more
able energy. loans for technical upgrades in the sector.
The comments were made in an open letter Julien Vincent, executive director of Market
to state-controlled BoC chairman Liu Liange Forces, an Australian organisation that cam-
and came from environmental groups in 13 paigns against fossil fuel finance, said dozens of
countries in Asia, Africa and Europe, Reuters coal-fired power plants around the world would
reported. not go ahead without the bank’s support.
The call is aimed at China’s financing of coal “The narrative on coal from Chinese business
projects, mainly in emerging economies in Asia and finance leaders is clearly shifting, but what
and Africa, especially as part of its Belt and Road really counts is action,” he told Reuters.
Initiative (BRI), which aims to increase Beijing’s Chinese financial institutions have been
economic influence worldwide. gradually shifting away from coal. Industrial and
The letter, which has been signed by organ- Commercial Bank of China, the world’s biggest
isations from several BRI countries, indicates bank by assets, has already pledged to draw up a
growing opposition to coal even in developing “road map” to pull out of coal.
nations. In recommendations published last week, a
China has repeatedly said that it would government advisory body also called on China
respect the right of local communities to decide to “restrict and gradually stop” the use of pub-
what sort of energy they needed. lic funds in overseas coal power investment,
BoC’s total overseas financing of coal-based and encourage state banks to make similar
power projects since the Paris Climate Agree- commitments.
ment in 2015 stands at more than $35bn, the According to research released this week by
most by any investor globally, and is “out of step European think-tank E3G, 44 countries have
with China’s climate change ambition”, the letter already committed to “no new coal”, with 1,175
said. GW of coal-power capacity cancelled since 2015.
It said more than 130 financial institutions It said a similar pledge by China would
have already decided to restrict fossil fuel invest- remove 55% of all of the world’s proposed new
ments, and urged the BoC to follow suit. coal-fired power projects.™
The BoC declined to comment on the letter.

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