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Momentum of coal phase-out deals to heat up with its inclusion in the Asean Taxonomy

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Janice Lim

Janice Lim

Published Mon, Apr 17, 2023 · 05:50 AM
    • While banks welcome the development to the taxonomy, OCBC's head of sustainability office and global wholesale banking Mike Ng noted that more guidance and consideration could be given to address the issue of compatibility of coal phase-put financings with banks’ emissions targets, especially for banks that have undertaken net-zero commitments to decarbonise their portfolios.
    • While banks welcome the development to the taxonomy, OCBC's head of sustainability office and global wholesale banking Mike Ng noted that more guidance and consideration could be given to address the issue of compatibility of coal phase-put financings with banks’ emissions targets, especially for banks that have undertaken net-zero commitments to decarbonise their portfolios. PHOTO: AFP

    SOUTH-EAST Asian bankers expect the pace of phasing out coal to heat up as recent changes to a regional sustainable finance framework potentially allow more financing of such projects.

    Recent updates to the Association of Southeast Asian Nations (Asean) Taxonomy allow for coal power plants to access sustainable financing — on the condition that they are retired in a sufficiently timely manner.

    The change brought some regulatory clarity to a controversial aspect of sustainable financing: How to transition away from thermal coal in a way that not only achieves climate goals but also meets the needs of communities that are highly dependent on the fossil fuel for power.

    CoalESGsustainable financeGreen taxonomy

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