Page 7 - AsiaElec Week 20 2021

AsiaElec COAL-FIRED GENERATION AsiaElec

Philippines bank to half coal-fired

power financing by 2026

PHILIPPINES THE Bank of the Philippine Islands (BPI), energy needs of the country enriching its energy
owned by the giant Ayala conglomerate, has portfolio with more renewable energy projects.
announced plans to half its financing for coal While we cannot yet fully abandon coal and
power-fired plants in the next five years. non-renewable energy, because of the deficit in
Outgoing BPI president and CEO Cezar energy supply versus demand, we support the
P. Consing told the AGM: “It is our intent to shift to renewable energy resources and energy
achieve zero coal in line with the Paris Agree- efficiency,” it added.
ment target of 2037 for non-OECD Asia.” Under the Paris Agreement, an international
“In fact, we believe that we will be able to half treaty aimed at addressing climate change, the
the amount of our outstanding coal loans by the use of coal for power generation should peak by
end of 2026,” he added. 2020 and significantly reduce in the succeeding
BPI said that its loan portfolio for power years.
stood at 45% coal and diesel-fired projects, and The agreement is attempting cut coal-fired
a similar share for renewables projects. The bal- power generation by 80% below 2010 levels by
ance of 10% is accounted for by gas-fired power 2030, and phase it out completely by 2040.
projects. For Asian countries that are not members of
BPI, on its 2020 Integrated Report, said sus- the Organisation for Economic Co-operation
tainable development finance (SDF) for energy and Development (OECD), the phase-out date
efficiency projects amounted to PHP835mn is 2037.
($17.4mn) last year, while it amounted to Coal-fired power plants account for around
PHP47.8mn for RE projects and PHP6.9bn for 58% of the Philippines’ power source, followed
climate resilience projects. by renewal energy (RE) and gas-fired power
“BPI aims to continue to respond to the plants, both at 21%.™

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