Japan, China, S Korea bankroll Indonesia’s coal despite Paris pledge

Japan, China and South Korea finance environmentally destructive coal-fired power plants in Indonesia despite promises to reduce climate emissions under the Paris Climate Accord , Analysts told the Thomson Reuters Foundation


Australian Environmental Finance Organization, Market Forces, said that it has analyzed 22 coal supply offers in Indonesia since January 2010 and found that financiers States for the three nations were involved in 18 of them.

In total, foreign banks, both commercial and state, provide 98% of the debt financing for projects, or $ 16.7 billion.

Indonesian banks provided only 2 percent of financial resources for projects, according to market forces analysis released this week.

Japan, China and South Korea "are aboard the Paris climate change agreement. They all have good political noises," said Julien Vincent, executive director of Market Forces, To the Thomson Reuters Foundation in a telephone interview. But "it is the same governments that subscribe to a new development of coal elsewhere," he said, calling for "flagrant" actions.

The Paris 2015 agreement, which came into force in November, aims to limit the increase in average global temperatures to below 2 degrees Celsius above pre-industrial times.

Coal is the most polluting of the main fossil fuels and scientists say its use must be quickly eliminated to give the world a chance to meet its goals to curb climate change that leads to more deadly heat waves, floods And the rise of the sea level the world. Indonesia, the largest economy in Southeast Asia, is already one of the largest emitters of greenhouse gases in the world.

Market forces reported that the China Exim and China Export Bank was involved in seven of the coal agreements, Japan Bank for International Cooperation (JBIC) and China China Development Bank (CDB) into five bids, and The Development Bank of Korea (KDB) into a single agreement. The Export-Import Bank of Korea (Korea Eximbank) is also involved in an agreement with JBIC, he said.

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