Page 13 - AsiaElec Week 18 2021

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INVESTMENT But domestically, Korea is highly team looking at our gas option. We are doing,
dependent on coal for energy, which means its on a very early stage, feasibility studies for gas
South Korea’s banks plan to finance industry has been a coal investor. on at least two locations,” he said.
Rubio said Aboitiz Power would later come
From 2009 through the end of June 2020,
kick the coal habit Korea’s financial institutions injected 60 up with a definitive position on coal.
“DOE came up with a coal moratorium
trillion won ($54.1bn) into coal-fired power
South Korea’s financial institutions are getting plants at home and abroad, according to policy and still allowing brownfield coal in
out of the business of financing the coal a white paper on Korea’s coal investment certain categories especially super-critical coal
industry to align themselves with carbon released in October. The paper was produced moving forward and those with permits to
neutrality goals for 2050. jointly by local nonprofit Korea Sustainability proceed,” he said.
The country’s major financial players -- KB Investing Forum, Greenpeace Korea and the “I think in certain areas in the Philippines,
Financial Group, Shinhan Financial Group, office of Rep. Yangyi Won-young of the ruling there will be specific niches where coal will
Hana Financial Group and Woori Financial Democratic Party of Korea. remain to be competitive and at the end of the
Group -- have all announced plans to make day it, will be still be market forces that will
their investment portfolios carbon neutral decide that. Will we participate? It’s something
by 2050. The best way to do that, of course, that we will continue to look at, but the option
is to ditch coal investments and funnel funds COAL that we are really considering particularly in
into green projects like renewable energy Luzon would be gas,” he said.
development, JoongAng Daily reported. Philippines’ Redondo
Their commitments began last year as the
Moon Jae-in government came up with its Peninsula drops 660-MW
own Green New Deal, a package of policies EMISSIONS
aimed at ending Korea’s dependence on Subic coal project
fossil fuels and replacing it with increased China to focus on cutting
investments in renewable energy. The consortium behind the Philippines’
Moon’s first policies were announced last Redondo Peninsula Energy Inc. pulled out of emissions
July. Last month, Moon announced that his the planned 660-megawatt coal-fired facility
administration will no longer let public funds in Zambales province. China will make cutting emissions a focus of
flow into building new coal-fired power plants RP Energy is a joint venture among its ecological strategy in the next five years,
overseas. He made that announcement during Meralco PowerGen Corp., a unit of Manila President Xi Jinping said, vowing to call
the Leaders Summit on Climate led by U.S. Electric Co., Therma Power Inc. of the off projects which consume a lot of energy
President Joe Biden, which brought together Aboitiz Group and Taiwan Cogeneration and can’t meet environmental standards,
heads of some 40 countries virtually. International Corp. Bloomberg reported.
Environmental organisations considered Aboitiz Power Corp. president Emmanuel “The carbon neutral and emission-peaking
that announcement a big step for Korea. Rubio said the company was now looking at goals are solemn promises China has made to
According to a Global Coal Exit List released the site as a possible gas project in the future. the world,” Mr Xi said at a study session of the
by German environmental group Urgewald, “We are partners with Meralco and RP Communist Party’s Politburo last week.
Korea was the ninth largest investor in the Energy and since we have communicated “They will bring about broad and profound
world’s coal industry as of last January. with RP Energy, we will not be building coal economic and social reforms and they will not
Already, 11 countries including the anymore, that we are actually reserving that be achieved easily,” according to a statement
United States and the United Kingdom have site for possible gas option to supply as CSP carried by the official Xinhua news agency,
announced they will stop public funds from [competitive selection process] by Meralco which cited him.
flowing into building coal-fired power plants or any other DU [distribution utility] that Local governments at all levels must set
overseas. That commitment has been echoed we have a CSP say for mid-merit and even out clear timetables, road maps and work
by over a thousand financial institutions for an NGCP [National Grid Corp. of the plans for the efficient use of resources and
globally including major institutions like the Philippines] provider for ancillary services,” development in a low-carbon way, he said.
World Bank, European Investment Bank and Rubio said. High energy-consuming and high-
the Asian Development Bank. Meralco PowerGen president Rogelio emission projects that fail to meet
Though financial institutions don’t directly Singson agreed with Aboitiz Power’s position environmental standards must be stopped, he
pump out carbon the way manufacturers and for RP Energy to move away from coal. added.
energy producers do, they provide the funds “The site for Redondo may not be for At a climate summit convened by United
that make factories get built and operate. baseload, so maybe for mid-merit LNG which States President Joe Biden last week, Mr
Cutting funds flowing into coal has been we’re studying with our partners,” Singson Xi reiterated the nation’s goal of becoming
considered a key role for financial companies said carbon neutral by 2060. While China will
worldwide to play to help tackle climate The development of the RP Energy project increase coal consumption between now and
change. was put on hold since 2019 over geological 2025, it plans to reduce it in the following five-
Already global investors like BlackRock concerns arising from the “instability in one of year plan from 2026.
have been aggressively pushing Korean coal the slopes” that could affect construction. China will improve its management of
plant builders like the Korea Electric Power It was also delayed by the issuance of a writ binding targets for environment protection,
Corporation (Kepco) to stop investing in coal. of Kalikasan against the project, which was energy saving and emission reduction, and
In January, Dutch pension fund APG sold its eventually resolved. build a stable fiscal spending mechanism, the
Kepco shares due to the continued building Rubio said that for baseload power plants Chinese leader said at the Politburo event.
of coal-fired power plants by the utility. Last or those that could run 24/7, Aboitiz Power The country will provide funds and
October, Kepco announced it will no longer was always looking at the gas option. technology support for developing nations
build new coal-fired power plants overseas. “In fact, as we speak we already have a to improve their environment management

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