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Japanese bank used environmental preservation loans used to finance Vietnamese coal plant

January 19, 2021

Climate Home News:

A Japanese state-owned bank is using a green fund to finance a Vietnamese coal power plant, sparking accusations of “egregious greenwashing”.

The Japan Bank for International Cooperation (JBIC) announced last month it would invest $636 million in the controversial Vung Ang 2 project, through its Growth Investment Facility.

In response to questions from opposition lawmaker Mizuho Fukushima, seen by Climate Home News, the finance ministry revealed the loan came from a part of the facility targeted at “environmental preservation”.

Analyst Simon Nicholas, from the Institute for Energy Economics and Financial Analysis, said that Vietnam does not need more coal power. “JBIC is encumbering Vietnam with old power technology at a time when the country is reducing focus on coal and seeing renewable energy installation skyrocket,” he said. “Vietnam installed almost 5GW of utility-scale solar power in 2019 and an astonishing 9GW of rooftop solar in 2020. Wind power is also expanding fast in Vietnam. Such renewable energy growth undermines the rationale for further coal-fired power development.” 

[Joe Lo]

More: Vietnamese coal imports hit record high in 2020

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