Vietnam: Singaporean banks finance coal-fired power station; Indonesian experience found energy source caused health problems, damaged crops

Author: David Fogarty, The Straits Times, Published on: 23 April 2018

DBS and OCBC are among a group of banks and lending agencies that have signed off on financing of about US$1.87 billion...for a controversial coal-fired power station in Vietnam.

The 1,200MW Nghi Son 2 power station in Tinh Gia district, Thanh Hoa province, is one of a number of large coal-fired power plants planned to meet Vietnam's energy needs.

But green groups, the International Energy Agency and the World Bank fear such big coal projects will exacerbate climate change by locking in years of polluting emissions. [...]

Environmental groups have put pressure on DBS, OCBC and UOB as they are major funders of coal projects in the region. [...]

The Singapore banks, however, say coal financing is meeting an investment need. They believe that a rapid switch to renewable energy is not feasible for now....

Indonesia, a major coal producer, also has large investment plans for coal-fired power stations.

...Greenpeace issued a report on...Celukan Bawang coal-fired power plant...has caused health problems, damaged crops and reduced fish stocks….

[also refers to Japan's Marubeni, Korea Electric Power, Japan Bank for International Cooperation (JBIC), Export-Import Bank of Korea (Kexim), Sumitomo Mitsui Banking Corp, MUFG, Mizuho, Shinsei Bank, and Maybank]

 

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Related companies: DBS Bank OCBC Bank UOB (United Overseas Bank)