(Removes mention of HSBC from paragraph 7)
* Bank pulls out of coal plants in Vietnam & Indonesia
-sources
* Southeast Asia a rare growth area for coal power
* Region seen as major risk to Paris climate goals
By Joe Brock
SINGAPORE, Dec 18 (Reuters) - Standard Chartered
has pulled financing for three coal-fired power plants in
Southeast Asia amid a global push to cut greenhouse gas
emissions, throwing into doubt projects worth an estimated $7
billion and piling pressure on the coal industry.
Banks and investors are facing pressure from environmental
groups to stop funding power projects fired by the polluting
fossil fuel, seen as a major risk to global plans to tackle
climate change under the Paris Climate Agreement that demands a
virtual end to coal power by 2050.
Just last week, Credit Suisse said it would stop
financing new coal-fired power plants.
Standard Chartered said in a statement on Tuesday it would
pull out of three coal power ventures in Southeast Asia.
The Asia-focused bank did not name the projects but industry
sources said it referred to the Vung Ang 2 and Vinh Tan 3 plants
in Vietnam, and Java 9 and 10 in Indonesia.
Hong Kong-based power investor CLP Holdings, a developer on
both Vung Ang 2 and Vinh Tan 3, also said on Tuesday that it
would no longer invest in new coal-fired power generation.
A subsidiary of Japan's Mitsubishi is developing
Vung Ang 2 and Vinh Tan 3. Singapore's DBS is one of
the lenders to Vung Ang 2 while Chinese government-backed
institutions are funding Vinh Tan 3.
Driven by rising electricity demand in places like Indonesia
and Vietnam, Southeast Asia was the only region in the world
where coal's share of total energy supply increased last year,
and demand is expected to rise steadily for decades.
Together the three projects jettisoned by Standard Chartered
were due to cost an estimated $7.7 billion, according to Market
Forces, an Australia-based environmental finance organisation.
"Decisions of banks like Standard Chartered to avoid new
coal power plants could make or break our ability to keep global
warming under control," said Bernadette Maheandiran, legal
analyst at Market Forces.
"This is an important step, but nothing short of what is
needed if we want to align finance with the goals of the Paris
Agreement."
China, which has made major investments in renewable energy
and pledged to slow coal usage at home, remains the biggest
financier to coal power projects abroad.
Chinese financial institutions have committed or offered
funding of $35.9 billion for 102 gigawatts of coal-fired power
now being developed outside the country, including in
Bangladesh, Vietnam, South Africa and Pakistan.
(Reporting by Joe Brock; Editing by Himani Sarkar)
HSBC Holdings (HSBA)
Standard Chartered (STAN)
