nuclear-news

The News That Matters about the Nuclear Industry

Asia’s coal-fired power boom ‘bankrolled by foreign governments and banks’

The vast majority of newly built stations in Indonesia relied on export credits agencies or development banks, says study by Market Forces, Guardian, Michael Slezak, 20 july 17, The much-discussed boom in coal-fired power in south-east Asia is being bankrolled by foreign governments and banks, with the vast majority of projects apparently too risky for the private sector.

Environmental analysts at activist group Market Forces examined 22 deals involving 13.1 gigawatts of coal-fired power in Indonesia and found that 91% of the projects had the backing of foreign governments through export credit agencies or development banks.

Export credit agencies, which provide subsidised loans to overseas projects to assist export industries in their home countries, were involved in 64% of the deals and provided 45% of the total lending.

The majority of the money was coming from Japan and China, with the Japan Bank for International Cooperation (JBIC) involved in five deals and the Export-Import Bank of China (Cexim) involved in seven deals. All the deals closed between January 2010 and March 2017.

The China Development Bank was the biggest development bank lending to the projects, imparting $3bn, with a further $240m in development funds coming from Korea’s Korea Development Bank.

The lending comes despite the world’s biggest development bank – the World Bank – warning last year that plans to build more coal-fired power plants in Asia would be a “disaster for the planet” and overwhelm the deal forged at Paris to fight climate change.

“Right now, several key countries supporting the Paris climate change agreement are actively undermining it by trying to expand the polluting coal-power sector in other countries,” said Julien Vincent, executive director of Market Forces.

According to the International Energy Agency, the world needs to phase out coal-power by 2050 in order to keep warming under 2C……..

The push of financing comes as Japan, China and Korea move to cut plans for coal-power in their own countries. Vincent said the moves were related, since Indonesia was now seen as a testing ground for new coal-fired power station technology. https://www.theguardian.com/environment/2017/jul/20/asias-coal-fired-power-boom-bankrolled-by-foreign-governments-and-banks

Advertisements

July 22, 2017 - Posted by | general

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: