SHANGHAI, September 14 (Hfrance.fr) - Bank of China (BoC) (601988.SS) , one of the world's leading investors in coal-fired power plants, must end funding for such projects outside China and support clean and renewable energy instead, an alliance of 35 non-governmental organizations said Tuesday.
The comments, made in an open letter to state-controlled BoC chairman Liu Liange and signed by groups from 13 countries in Asia, Africa and Europe, add to growing criticism of the against China for financing coal-fired power plants abroad, in particular as part of its "Belt and Road " initiative.
While China said it would respect the law oflocal communities to decide what kind of energy they need, the letter, which has been signed by organizations from several Belt and Road countries, indicates growing opposition to coal, even in developing countries.
The Bank of China 's total overseas funding for coal-based power projects since the Paris agreement on the climate in 2015 amounts to more than $ 35 billion, the highest amount by any investor in the world, and is "out of step with China's ambition on climate change "the letter reads.
He said more than 130 financial institutions had already decided to restrict investment in fossil fuels, and urged the Bank of China to follow suit.
The Bank of China did not immediately respond to inquiries as to howareas. Its chairman Liu Jin said at the end of August that the bank would "gradually reduce" the share of total credit given to coal projects during the period 2021-2025, but that it would also issue more loans for technical upgrades in the sector.
Julien Vincent, executive director of Market Forces, an Australian organization which campaigns against this, said that dozens of coal-fired power plants in the world would not move forward without the backing of the bank.
"The coal story of Chinese business leaders and finance are clearly evolving, but what really matters is action "he told Hfrance.fr.
Chinese financial institutions have gradually moved away from coal. Industrial and Commercial Bank of China (601398.SS) ,, the world's largest bank by assets, has already committed to establishing a "roadmap " to get out of coal. read more
In recommendations released last week, a government advisory body also called on China to " restrict and phase out "the use of public funds in coal energy investments abroad, and encourage state banks to make similar commitments. Reporting by David Stanway, Additional reporting by Cheng Leng in Beijing; Editing by Muralikumar Anantharaman
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