September 14, 2020 Read More →

CIMB Group Holdings, indicates coal divestiture policy in the works

The Edge Malaysia:

CIMB Group Holdings Bhd says it will be coming out with a coal financing policy by the end of the year, a move seen by some as potentially the first step — depending on the policy details — towards the bank’s phasing out of the controversial coal sector.

The development comes as an increasing number of global financial institutions announce policies to restrict or end coal financing. So far, in Southeast Asia, only Singaporean banks have put in place policies — just last year — to stop funding coal power projects. Malaysian banks have yet to do so, according to the Institute for Energy Economics and Financial Analysis (IEEFA)

According to IEEFA, an energy think tank, there are now 138 globally significant financial institutions — including banks, insurers and asset managers — that already have formal coal exclusion policies. Coal is controversial as it is the single biggest contributor to man-made climate change.

“We have tracked 49 new or improved coal exit policy statements globally year to date in 2020,” Tim Buckley, its director of energy finance studies for Australia/South Asia, tells The Edge in a phone interview. Southeast Asian banks have been laggards in this space, he notes. 

[Adeline Paul Raj]

More: CIMB to come up with coal financing policy by end-2020

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