Singapore’s United Overseas Bank (UOB), Southeast Asia’s third largest bank, has announced it will stop funding coal-fired power plants to focus on funding renewable projects in the region. It is the third of Singapore’s big three banks to quit coal. The past month marks an important time for sustainable finance in Southeast Asia, with OCBC Bank declaring it would stop funding new coal-fired power stations on 15 April, and DBS Bank following two days later. UOB has stopped the financing of all new coal-fired power plants since January 2018. The move marks a significant change in stance from the bank, which had previously defended its position on coal lending, saying that fossil fuel stills play a role in supporting the region’s economic growth. Over the last five years, UOB has financed coal power deals worth $262 million. Singapore’s banks are the first in Southeast Asia to take a tougher stance on coal as the world’s financial services industry backs away from the fossil fuel, which is the single biggest contributor to man-made greenhouse gas emissions.

Posted by

Eco-Business