FOUR of the country’s top local banks reiterated their policies of not supporting additional coal, including Therma Visayas Inc.’s (TVI) expansion TVI’s expansion project in Toledo, Cebu.
The four -BDO Unibank, Bank of the Philippine Islands, Security Bank and the Development Bank of the Philippines- which previously supported TVI’s two units reiterated their coal exclusion policies that deter financing for new coal capacity in correspondence with the Withdraw from Coal: End Fossil Fuels (WFC:EFF), a coalition of environmentalists, faith leaders, and other sectoral groups.
“BDO is not financing this (TVI Unit 3) project and we are not among the banks that have expressed interest in doing so,” said BDO Unibank Vice President and Chief Sustainability Officer (CSO) Marla Alvarez.
BPI, the first domestic private bank to publicly announce its commitment to stop financing greenfield coal projects and to zero coal exposure by 2032, also reiterated its policy.
“We at BPI remain steadfast in our commitment not to finance any new greenfield coal power generation projects, and a new expansion unit, even if to an existing plant, is covered under BPI’s existing coal policy,” said Eric Luchangco, BPI’s Chief Finance Officer and CSO.
Security Bank also stated that it will not be participating in the expansion project in line with their 2022 commitment to no longer finance new coal generation projects, and to wind down existing exposures by 2033. Meanwhile, state-owned development bank DBP also reaffirmed its 2017 policy of putting coal power facilities on its negative list.
“As to date, DBP’s existing policy putting coal power on a negative list remains in full force and effect,” said DBP Vice President Rustico Noli Cruz.
Landbank of the Philippines, which also financed TVI’s existing units before, has coal exclusion policies but is yet to confirm nor deny participation in the Toledo coal expansion.
The bank clarified that its coal financing policy will follow the Department of Energy’s coal moratorium.
Graft charges have also been filed against Energy Secretary Raphael Lotilla due to his endorsement of TVI’s Unit 3 despite the expansion contravening the 2020 coal moratorium.
“The banks’ unwillingness to back the expansion unit of TVI should already be a hint to Aboitiz that building another coal plant would be a losing game—financially, environmentally, and even with regards to the country’s sustainable energy needs,” said Gerry Arances, co-convenor of the WFC:EFF.
Along with Bishop Gerardo Alminaza, several environmental groups have launched the “Save Tañon Strait” campaign in September to protect the largest marine protected area in the country from the impacts an additional unit of TVI coal facility will make.
