OCBC-backed working group unveils coal financing transition guidelines

It introduces best principles into the financing phase out of coal-fired power plants.

A working group including OCBC has launched facility-level just transition guidelines for banks’ transition plans particularly for phasing out financing to coal-fired power plants.

The Climate Finance Asia, the secretariat of the Facility-level Just Transition Working Group (F-JTWG), has launched facility-level just transition guidelines for banks, assessment tools, and a scorecard, reportedly the world's first.

This is expected to help banks assess their alignment with just transition principles and guide them in engaging with clients to achieve a sustainable and equitable transition, Climate Finance Asia said in a statement.

F-JTWG comprises 13 global and regional banks, non-governmental organisations, and philanthropies. These include the  Growald Climate Fund, Anthropocene Fixed Income Institute, Climate Bond Initiative, International Labour Organization, and OCBC.

It was formed to develop practical ways to integrate best principles into the financing phase out of coal-fired power plants (CFPP) in the transition to renewable energy.

The new F-JT Assessment Tools and Scorecard provide concrete mechanisms for banks and borrowers to implement these principles, according to Climate Finance Asia.

International experts and practitioners reportedly contributed to the development of these resources.

The guidelines are said to draw upon leading international standards, best practices, and unique mechanisms developed by the Working Group.