The open letter names Bank of China as the world's largest coal financier. (Photo source: Wikimedia)

Bank of China urged to stop funding coal projects overseas

The alliance, made up of 35 NGOs, noted the bank’s alleged lack of a public policy to reduce coal investments.

An alliance of 35 non-governmental organisations has asked Bank of China (BOC) to end financing coal power plant projects outside China, based on an open letter signed by groups from countries in Asia, Africa, and Europe.

The open letter addressed to BOC's chairman Liu Liange, noted that the bank’s total overseas financing of coal-based power projects since the Paris climate agreement in 2015 has reached over $35b. This makes BOC the largest coal financier in the world at the moment, the letter said.

The alliance also hit on BOC’s lack of a public policy that reduces its investments in coal and fossil fuels. This reportedly puts it behind 130 financial institutions that have limited their support for fossil fuels.

In the letter, BOC is urged to enact a policy that rules out financing new and expansionary thermal coal and mining projects; commits the bank to face out financing to the fossil fuel industry; and prioritizes financing for the development of clean, renewable energy “in a manner that upholds local ecological sustainability and the rights of communities to free, prior, and informed consent.”

The alliance said that it is open to have a dialogue with BOC to discuss any issues specific to the bank’s coal projects that it is financing in the alliance’s home countries and to improve its policies to phase out coal.

BOC has yet to respond to the open letter as of press time.

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Google Pay users can get up to a 20% cashback when they pay through SGQR.
It is exiting the retail banking business to refocus on corporate transactions.
NPL ratio is expected to rise to its highest since the 2009 financial crisis.
The latest licensed banks in Thailand have loan market share below 0.5%. 
The capital injection was approved by the State Bank of Vietnam.
RetireSavvy allows Singaporeans to adjust their retirement plans.
Its net promoter score rose 35% in 2021 from end-2020.
Chuchkina has 15 years of experience in the fintech industry.
Green projects have the potential to create over 1,350 jobs in the country.
Rapheal Mun will relocate from Singapore to London for her new role.
The new COVID surge that began in April may hinder GDP recovery.
Banking leaders admit that they are at risk of ceasing to exist in 5-10 years.