Focus on Arts and Ecology

 The big environmental stories in the Chinese media (28 May-3 June)

On 29 May, the ICBC – China’s largest bank and the second largest in the world in terms of assets – announced it will “establish a roadmap and timeline for the gradual withdrawal of coal financing”. It also said it would double its investments in renewables by 2030.
 
It is the first major Chinese bank to commit to phasing out finance for coal-related projects. ICBC has loaned over US$3 billion and underwritten nearly $37 billion for such projects around the world, according to German NGO Urgewald’s Global Coal Exit List. 
 
ICBC’s chief economist, Zhou Yueqiu, made the withdrawal announcement at the International Financial Forum. He spoke positively of the bank’s green credentials, stressing that it is already China’s number one green financier, with nearly RMB 2 trillion (US$300 billion) in green loans issued to date. 
 
On the thorny topic of overseas energy investments, Zhou said ICBC already “strictly controls standards” on the projects it finances and only loans to projects that are “technologically advanced and comply with host country laws and environmental protection standards.” In reality, the bank has been involved in numerous highly controversial projects, including the Lamu coal power plant, which was ultimately cancelled after its environmental permit was overturned by Kenya’s high court, and the subcritical Thar Block-1 coal power plant in Pakistan. With many Belt and Road countries having lax or poorly enforced environmental standards, deferring to their regulations can be problematic.
 
Information on the timeline and stringency of ICBC’s withdrawal from coal financing will be much anticipated. For now, the announcement is a major first step towards the greening of Chinese finance.

(Sources: China Dialogue)