[et_pb_section fb_built=”1″ _builder_version=”4.20.2″ _module_preset=”default” background_color=”#cd0304″ custom_padding=”4px||2px|||” global_colors_info=”{}” global_module=”72786″ theme_builder_area=”post_content”][et_pb_row _builder_version=”4.20.2″ _module_preset=”default” max_width=”75%” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.20.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.20.2″ _module_preset=”default” header_3_font=”Inter|800|||||||” custom_margin=”||8px|||” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n
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[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.1″ background_image=”https:\/\/www.marketforces.org.au\/wp-content\/uploads\/2017\/11\/Indonesia-coal-mining-banner-1600×640.jpg” global_colors_info=”{}”][et_pb_row column_structure=”3_5,2_5″ _builder_version=”4.18.1″ _module_preset=”default” max_width=”80%” global_colors_info=”{}”][et_pb_column type=”3_5″ _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.1″ _module_preset=”default” header_font=”|700||on|||||” header_text_color=”#FFFFFF” header_font_size=”3em” header_text_shadow_style=”preset2″ global_colors_info=”{}”]<\/p>\n
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Singapore’s banks are funding a huge problem<\/a> [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.1″ _module_preset=”default” custom_padding=”0px|||||” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_text module_id=”intro” _builder_version=”4.18.1″ _module_preset=”default” header_font=”|700|||||||” header_3_font=”|700||on|||||” header_3_text_align=”center” header_3_font_size=”2em” header_3_text_shadow_style=”preset4″ global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n January 2018<\/strong><\/p>\n If the world is to have an 80% chance of meeting its agreed goal of keeping global warming to below 2\u00baC, then 80% of fossil fuels worldwide must remain in the ground according to independent financial think tank <\/span>Carbon Tracker<\/span><\/a>. Yet despite pledges to take action on climate change, banks continue to fund the expansion of the fossil fuel industry.<\/span><\/p>\n Failure to keep a lid on global warming would be an environmental and humanitarian disaster, but the economic impact would also be enormous.<\/span><\/p>\n As Mark Carney, Governor of the Bank of England has repeatedly warned, investors face \u201cpotentially huge\u201d losses from climate change action that could make vast reserves of oil, coal and gas \u201cliterally unburnable\u201d. <\/span><\/p>\n As the world moves to limit global warming, <\/span>trillions of dollars<\/span><\/a> of fossil fuel assets are at risk in the impending \u2018carbon bubble\u2019 according to Carbon Tracker\u2019s founder Mark Campanale.<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.1″ _module_preset=”default” custom_padding=”0px||1px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_text module_id=”overall” _builder_version=”4.18.1″ _module_preset=”default” header_font=”|700|||||||” header_3_font=”|700||on|||||” header_3_text_align=”center” header_3_font_size=”2em” header_3_text_shadow_style=”preset4″ global_colors_info=”{}”]<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”3_5,2_5″ _builder_version=”4.18.1″ _module_preset=”default” custom_padding=”0px|||||” global_colors_info=”{}”][et_pb_column type=”3_5″ _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Singapore\u2019s 3 major banks – Oversea-Chinese Banking Corporation (OCBC), DBS Bank and United Overseas Bank (UOB) – are highly active overseas <\/span>project finance investors<\/span><\/a> in Asia Pacific and globally. Yet these banks seem to fly under the radar of studies examining dirty lending practices, lack of climate policy and failure to adopt industry standards such as the Equator Principles.<\/span><\/p>\n Market Forces analysed data from <\/span>IJGlobal<\/span><\/a>, a leading online energy and infrastructure finance data service, relating to OCBC, DBS Bank and UOB’s lending to coal companies and projects since 2012.<\/span><\/p>\n 22 deals worth US$2.41 billion were included in the analysis. 13 deals for coal-fired power stations totalled $1,409 million, while five coal port deals were worth $630 million and four focused on coal mining worth $372 million. <\/span><\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”2_5″ _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/www.marketforces.org.au\/wp-content\/uploads\/2017\/12\/Paiton-thermal-power-plant.jpg” title_text=”Paiton thermal power plant” _builder_version=”4.18.1″ _module_preset=”default” custom_margin=”||-2px|||” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Paiton Power Station, Indonesia. Funded by DBS. [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_text module_id=”analysis” _builder_version=”4.18.1″ _module_preset=”default” header_font=”|700|||||||” header_3_font=”|700||on|||||” header_3_text_align=”center” header_3_font_size=”2em” header_3_text_shadow_style=”preset4″ global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n OCBC<\/b>\u00a0has participated in 14 coal deals since 2012, lending $1,142 million:<\/span><\/p>\n DBS Bank<\/b> participated in 13 deals worth $1,007 million since 2012, five of which also involved OCBC:<\/span><\/p>\n United Overseas Bank<\/b> participated in five deals worth $262 million since 2012, all of which involved at least one other Singaporean bank:<\/span><\/p>\n Of all the deals, the vast majority (19) consisted of finance for coal projects (known as project finance) whilst three financed companies (corporate finance).<\/span><\/p>\n Eight deals consisted of newly established lending for the construction of seven coal-fired power projects. Ten deals were \u2018refinancings\u2019, whereby lenders renew existing debt for companies or projects that have typically already been built or are under construction. Three deals financed acquisitions of coal assets and one was additional debt to an existing project.<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.1″ _module_preset=”default” custom_padding=”0px||1px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_text module_id=”pipeline” _builder_version=”4.18.1″ _module_preset=”default” header_font=”|700|||||||” header_3_font=”|700||on|||||” header_3_text_align=”center” header_3_font_size=”2em” header_3_text_shadow_style=”preset4″ global_colors_info=”{}”]<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”3_5,2_5″ _builder_version=”4.18.1″ _module_preset=”default” custom_padding=”0px|||||” global_colors_info=”{}”][et_pb_column type=”3_5″ _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n The World Bank president, Jim Yong Kim, <\/span>remarked<\/span><\/a> last year that \u201cif Vietnam goes forward with 40 GW of coal, if the entire region implements the coal-based plans right now, I think we are finished.\u201d<\/span><\/p>\n Despite this, DBS Bank has been named as part of a syndicate in three 1200MW coal-fired power plants in Vietnam – Nam Dinh 1, Nghi Son 2, and Vung Ang 2. OCBC is also involved in Nghi Son 2. Unless DBS moves to withdraw from these deals or institute a policy to restrict lending to coal power stations, as many other banks have around the world, it could find itself at the head of Singapore\u2019s dirtiest banks.<\/span><\/p>\n DBS is also a financial adviser for a number of planned coal-fired plants in Indonesia including the Jawa-6 (2000MW), Jawa-9 (1000MW) and Jawa-10 (1000MW) plants.<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”2_5″ _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/www.marketforces.org.au\/wp-content\/uploads\/2017\/12\/Vung-Ang.jpg” title_text=”Vung Ang” _builder_version=”4.18.1″ _module_preset=”default” custom_margin=”||-2px|||” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Vung Ang 1 power station, Vietnam. DBS is involved in funding the 1,200MW Vung Ang 2 expansion.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_text module_id=”analysis” _builder_version=”4.18.1″ _module_preset=”default” header_font=”|700|||||||” header_3_font=”|700||on|||||” header_3_text_align=”center” header_3_font_size=”2em” header_3_text_shadow_style=”preset4″ global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n \u201cClimate change is among the most pressing challenges of our time, and one that needs to be tackled urgently if we are to preserve the habitability of our planet. As a bank focused on ensuring sustainable development across Asia, we believe it is imperative that we contribute towards the fight against global warming by examining and reducing our own environmental footprint.” <\/p>\n -Mike Power, Chief Operating Officer for Technology and Operations, DBS Bank, and co-chair of the bank’s Sustainability Council<\/p>\n<\/blockquote>\n [\/et_pb_text][et_pb_text _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n DBS in particular is outspoken on the need to take climate action. Unfortunately its rhetoric is not matched by action. The reality is that Singaporean banks\u2019 policies are significantly weaker than their European and US peers.<\/span><\/p>\n Analysis<\/span><\/a> of commercial banks funding the expansion of coal-fired power globally, published in December by BankTrack, scored the coal power lending policies of 42 banks. The report did not consider DBS Bank, OCBC or United Overseas Bank so BankTrack retrospectively scored these institutions at Market Forces\u2019 request. BankTrack found that, compared to their contemporaries in Europe and the US, the Singapore banks performed poorly. Singapore’s banks scored \u2018D\u2019 or \u2018D-\u2019 compared with mostly \u2018B\u2019 and \u2018C\u2019 grades for European and US banks (see scores below).<\/span><\/p>\n [\/et_pb_text][et_pb_code _builder_version=”4.18.1″ _module_preset=”default” global_colors_info=”{}”]\n
How exposed are Singaporean banks to unburnable carbon?<\/a>
OCBC is Singapore’s dirtiest bank<\/a>
More dirty deals in the pipeline<\/a>
Why are Singapore’s banks fuelling the fire?<\/a>
Conclusion<\/a><\/p>\nSingapore\u2019s banks are funding a huge problem<\/h3>\n
Singapore\u2019s banks are funding a huge problem<\/h3>\n
\n(Photo by CEphoto, Uwe Aranas)<\/p>\nOCBC is Singapore\u2019s dirtiest bank<\/h3>\n
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More dirty deals in the pipeline<\/h3>\n
Why are Singapore\u2019s banks fuelling the fire?<\/h3>\n
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