AIIB is right to shun coal for cleaner energy investments
Helena Wright applauds the decision by the world’s newest development bank to follow the example of its peers on energy investments, providing a platform for China and the EU to lead action on climate change
Much has been said about how Beijing and the European Union will now take over America’s mantle and lead the world on climate change. The world’s newest development bank – the Asian Infrastructure Investment Bank – held its annual meeting in South Korea last week and approved its new energy-sector strategy. The investments funded by this new bank will turn all the fine words into action and set the way forward for the EU and China on the all-important issue of climate change.
AIIB’s vice-president Thierry de Longuemar confirmed that the bank “won’t finance” coal-fired power plants. This sends a strong signal that the bank plans to follow the example of other development banks by staying away from coal funding. This is great news.
The AIIB, headquartered in China, has initial funding in the region of US$100 billion, and the scale of its operations means it has the potential to be a game changer in the region. It was launched with a mission of being “lean, green and clean”, and its president, Jin Liqun ( 金立群 ), has said the bank wants to learn from the best practices of its peers.
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Happily, US President Donald Trump can have no influence over the path it chooses as the United States is not among the bank’s shareholders. While there were alarming reports in recent weeks that Australia, a major coal exporter, was lobbying for the bank to allow coal funding, the AIIB’s leadership has made it clear that it wants nothing to do with this.
Jin has confirmed “there are no coal projects” in the bank’s pipeline, and that it places “great emphasis on helping our members transition towards a low-carbon future”. Insiders have also said there is no demand for coal projects coming from client countries.
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A man prepares to set crab traps as the sun rises in Tangier, Virginia, in May. Climate change and rising sea levels threaten the inhabitants of this slowly sinking island. Tangier Island has lost two-thirds of its landmass since 1850. If nothing is done to stop the erosion, it may disappear completely in the next 40 years. Photo: AFP
