December 17, 2019 Read More →

Standard Chartered tightens coal finance rules, will pull out of three pending projects

Eco-Business:

Standard Chartered Bank has pulled out of three coal-fired power projects in Southeast Asia, marking a significant moment for corporate climate action in the region.

The London and Hong Kong-headquartered bank announced in a climate disclosure statement on Tuesday that it would only support clients that “actively transition their business to generate less than 10 per cent of earnings from thermal coal by 2030,” and would be withdrawing from three coal projects.

The company did not state which coal projects it would stop funding, but sources suggest that they are Vung Ang 2 and Vinh Tan 3 initiatives in Vietnam, and Java 9 and 10 in Indonesia.

StanChart announced more than a year ago that it would stop financing new coal plants, becoming the first major Southeast Asian-focused finance group to rule out funding any new coal power projects. However, the bank continued to back a number of projects in the region, including the 1,200 megawatt (MW) Vung Ang 2 and 1,980 MW Vinh Tan 3 plants.

In addition to the three coal project withdrawals, StanChart said it had increased its target for financing clean technology and renewables to $35 billion by 2025.

DBS, Southeast Asia’s largest bank, is the only one of Singapore’s big three banks that continues to fund coal, backing the development of the Vung Ang 2 facility.

[Robin Hicks]

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