World Bank slammed for backing Indonesian coal plants set to emit 250 million tons of CO2
- The bank is an indirect backer of the Suralaya coal-fired power complex, which is the largest in southeast Asia
- Plans to build 2 more would emit 250 million tons of climate-warming CO2 into the atmosphere, the groups said
Environmental groups have submitted a formal complaint to the World Bank for providing financial support for two coal-fired power plants in Indonesia, violating a pledge to stop backing fossil fuels.
The World Bank’s private sector subsidiary, the International Financial Corporation (IFC), is an indirect backer of the Suralaya coal-fired power complex via its equity investment in Hana Bank Indonesia, one of the project’s financiers, a coalition of green groups said on Thursday.
The Suralaya plant – already the largest in southeast Asia – has eight units in operation. Plans to build two more would emit 250 million tons of climate-warming carbon dioxide into the atmosphere, the groups said a letter to World Bank compliance ombudsman Janine Ferretti.
“Harm to local communities, including the forced eviction of those who were living on the project site, is already occurring,” said the letter, sent on behalf of local grassroots organisations by Inclusive Development International, a US non-governmental organisation.
The IFC, the World Bank and Hana Bank Indonesia did not immediately respond to requests to comment.
The IFC vowed to stop investing in coal in 2020, but it continues to hold stakes in financial institutions with coal investments, like Hana Bank, as long as they have plans to phase out their exposure.