SCUTTLEBUTT

Phl banks among RE funding leaders

At the Conference of Parties to the United Nations Framework Convention on Climate Change (COP29) in Baku, Azerbaijan, Southeast Asian banks, led by those from the Philippines, were cited for their rising portfolios in Renewable Energy (RE) financing.

A report presented at the global meeting, attended by a Philippine delegation headed by Environment and Natural Resources Secretary Maria Antonia Yulo-Loyzaga, highlighted a growing paradox in Southeast Asia: domestic banks are taking the lead in financing the surge in renewable energy, while international financial institutions from developed countries continue to fuel the region’s expansion of fossil fuel power.

Renewable energy capacity in the pipeline has jumped by a substantial 70 gigawatts (GW) in just one year, from 2023 to 2024, with domestic banks at the forefront of renewable energy financing.

This surge in renewables is a welcome development for a region facing the brunt of climate change. The threat of massive fossil fuel expansion, however, persists.

Since the Paris Agreement, the region has commissioned 54.5 GW of coal-fired power plants and 33.2 GW of gas-fired power plants, totaling 87.7 GW. This is more than double the installed renewable energy capacity of 33.8 GW.

Funding for fossil fuel-fed energy projects, however, remains high.

The report highlights the significant financial commitment to fossil fuels, with approximately $142.1 billion invested since the Paris Agreement. In contrast, renewable energy projects and related operations have received around $52.8 billion in financing — over half of which is attributed to domestic financial institutions in the region.