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ADB mulls end to upstream funding
ASIA THE Asian Development Bank (ADB) has and will help avoid more stranded coal assets,”
announced plans to phase out funding for Reuters quoted senior policy adviser at the Insti-
upstream projects while also introducing condi- tute for Climate and Sustainable Cities Pedro H
tions on fossil fuel investments in general. Maniego Jr as saying. “If the bank will consider
The bank said in a draft policy statement on fossil gas as a bridge and transition fuel, it needs
May 7 that in addition to halting funding for to stipulate an end.
exploration and production developments it More than 20 non-governmental organisa-
would also end investment in coal mining pro- tions (NGOs) called on the bank last week to end
jects. Other fossil fuel projects, meanwhile, will loans to the fossil fuel industry.
only receive backing if they met certain criteria “It’s time to power our communities with
such as when there is a lack of cost-effective clean, renewable energy,” regional campaigner
alternatives. at US-based 350.org Chuck Baclagon said in a
The policy will be deliberated by the ADB’s joint statement on May 3. “We need financial
board of directors in October, according to the institutions like the Asian Development Bank
bank’s head of energy, Yongping Zhai, who did to immediately stop lending money for coal, gas
not provide a timeframe for the introduction of and oil projects.”
the new investment conditions. The ADB’s website claims that the bank pro-
The move has been welcomed by environ- vided $42.5bn for energy projects in 2009-2019.
mental groups who have been lobbying the bank Zhai, meanwhile, told Reuters last week that the
to adopt a stricter position on funding fossil fuel bank had invested $25bn in such projects during
projects. 2015-2020, with 45% of that figure going towards
“The draft coal ban policy is a decade late, renewable energy and energy efficiency and
but it still helps build the economic case for the another 35% to network upgrades to integrate
energy transition to governments and investors, more renewable energy.
P6 www. NEWSBASE .com Week 20 19•May•2021
