Finance
Banks Shunning Coal Financing Bodes Badly for New Plants in Asia
- Half of planned projects in Indonesia, Vietnam still unfunded
- Changing investor sentiment to put much of that at risk: BNEF
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Lenders backing away from coal financing have tipped the scales against the dirtiest fossil fuel in Southeast Asia, raising the prospect that many new power plants will never be built, according to BloombergNEF.
About half of the proposed 41 gigawatts of coal-fired capacity in Indonesia and Vietnam haven’t secured funding, and plans by banks in Japan, South Korea and Singapore to exit the sector increase the risk they never will, BNEF said in a report Tuesday. The two Southeast Asian countries have the largest pipeline of coal-fired projects globally after China and India.