"The Double Standards of The ICBC Green Finance Policy: Citizens of Developing Countries Suffer from Pollution and Loss of Biodiversity" 23 June 2021

Jakarta, June 23rd 2021-Community groups appreciate the commitment of the Industrial and Commercial Bank of China (ICBC) to reduce coal financing and increase renewable energy funding, in line with the plans of several world leaders to achieve emission neutrality by 2050.

However, with the trajectory of policies that still provide space for coal funding in developing countries, it will be difficult for developing countries to achieve more ambitious milestones for their reduction in greenhouse emission due to the dominance of the coal industry.

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ICBC’s support for coal in developing countries also hinders these countries from achieving the United Nations Sustainable Development Goals on Clean and Affordable Energy, Good Health and Wellbeing, and Preservation of Land and Sea Ecosystems.

Like any other power plant establishments, the coal-fired power plants funded by ICBC raises various environmental and social problems. The Teluk Sepang Power Plant in Bengkulu, one of the plants funded by ICBC with a total of USD 270 million from the combined funding of ICBC and Export-Import Bank, has impacted the surrounding areas with environmental damage. Yayasan Kanopi Hijau Indonesia (The Indonesian Green Canopy Foundation) noted that 28 turtles died after the power plant’s trial. Successive turtle deaths occurred from November 2019 to January 2020.

Ali Akbar, chairman of Kanopi Hijau Indonesia stated that turbine cooling water waste disposal will cause the death of coral reefs. It is important to note that Bengkulu directly faces the Indian Ocean. The abrasion caused by waves hitting the coast is also a major problem. “The dying of coral reefs will not only cause the rate of abrasion to increase, but also increase the risk of tsunamis,” Ali explained.

The loss of coral reefs is also estimated to have an effect on the ecosystem of the turtles of Teluk Sepang, in other words, the loss of said turtles. ICBC is one of the actors that should be responsible should it happen.

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