Songdo, South Korea, 7 July 2017: More than 60 civil society organisations from Asia have signed an open letter expressing their ‘grave concern’ about the request from the Bank of Tokyo Mitsubishi UFJ Ltd. (BTMU) and the Japan International Cooperation Agency (JICA) to be accredited to the Green Climate Fund. They cite the fact that BTMU and JICA are among the most actively and heavily involved financial institutions in the financing of fossil fuels, particularly coal. They have left a trail of dirty energy funding too long and too wide to include here, but which stretches across several Asian countries.
The CSOs are urging the GCF Board to note that in Indonesia BTMU plays an active role in co-financing construction of coal power plants, while JICA is poised to support the expansion of the Indramayu coal power plant in West Java to 1,000-MW despite villagers’ reports of land grabs, lack of consultation.
In Vietnam BTMU recently signed financing agreements for the construction of several coal fired power plants and in Bangladesh, JICA is involved in shaping the very master plan for power systems in the country, reportedly suggesting to supply 13-22% of total coal demand from local deposits.
In the Philippines, between 1992 to 2000 JICA, it disbursed at least Â¥19,776 million for the Calaca coal-fired thermal power plant in Batangas province, including its expansion. In October 2016, BTMU and other banks signed a loan agreement with Aboitiz Power Corp. for the purchase of the Blackstone Group LP’s partnership interests in the 650-MW GNPower Mariveles Coal Plant and the 1200 MW GNPower Dinginin Expansion Project, both in Bataan province.
The CSOs point out that given their history of involvement in coal-fired developments, BTMU’s and JICA’s applications for accreditation run counter to the mandate and mission of the GCF.
The CSOs recommend that the Board require all applicants seeking to be Accredited Entities of the GCF to fully disclose their past, present and intended investments and financing of fossil fuel projects; and that significant involvement in fossil fuel projects should disqualify at the outset those seeking accreditation from the GCF.