Renewable energy accounts for only 14% of Asian bank’s financing
No discernible upward trend was seen in the past six years.
The share of renewable energy in Asian banks’ energy financing remained low at only 14% in the past six years with no significant upward trend, a report found.
In a report, Fair Finance Asia and Stockholm Environment Institute also found that only 21% of all outstanding energy investments by investors in the region were for renewable energy projects, as of September 2022.
“The conclusions from our new report confirm that no meaningful shift in energy financing and investments across Asia is contributing to neither a just nor any actual transition since the Paris Agreement," Bernadette Victorio, Program Lead, FFA, said.
"Funding decisions toward continued fossil fuels financing, as well as unambitious plans to achieve net-zero emissions by Asian governments, derail Asia from aligning with the 1.5 degrees Celsius target. FFA calls on the Asian financial sector and leaders to develop and urgently implement policies that facilitate a real shift from fossil fuels to renewables, while ensuring that the rights and well-being of the most vulnerable communities are safeguarded."
The report assessed 13 Asian markets, particularly Cambodia, India, Indonesia, Japan, Pakistan, Philippines, Thailand, Vietnam, Bangladesh, China, Malaysia, Singapore, and South Korea.
It found that on average, the respondents from the 13 key markets depend on coal, oil, natural gas to meet 77% of their electricity needs and more than half relied on fossil fuels for at least 80% of their power generation.