Asian Development Bank to end coal, oil financing

Market: Coal, Crude oil, Natural gas
12/05/21

The Asian Development Bank (ADB) is planning to end financing of coal-fired power projects and oil, gas and coal mining, making it the latest financial institution to pull back from the fossil fuel sector.

The pledge is part of a new draft energy policy that focuses on supporting the low-carbon transition in Asia. The government-backed bank said it will continue to finance natural gas projects, including pipelines, LNG terminals, storage projects and gas-fired power plants, but only if no other technologies can provide the same energy service at an equivalent cost, including the social cost of carbon.

Japan and the US are the largest shareholders in the Philippines-based ADB, which lends to social and economic projects in the region. It said it will help its 68 member countries finance emissions-control technologies at existing power plants but will not invest in modernising or upgrading such plants unless they are re-engineered to use cleaner fuels, such as gas or renewables.

The bank will support its members to reduce their dependence on coal and eventually phase out coal-fired generation completely — something it acknowledged would be a tough task, given coal generated almost 60pc of electricity in Asia in 2018.

The ADB financed around $42.5bn of energy projects of all types from 2009-19, largely in the power sector, with Pakistan, India, China and Indonesia among the top recipients. The new draft policy will be considered by its board in September-October this year.

Private-sector banks in Asia have also been cutting their exposure to thermal fuels, especially coal. Singapore's largest bank DBS last month pledged to phase out its thermal coal exposure by 2039. Japan's Sumitomo Mitsui Banking and Mizuho Bank withdrew from domestic and overseas coal-fired power development projects as of May and June 2019, respectively, while Malaysia's CIMB became the first southeast Asian bank to commit to a coal-exit strategy with a deadline in December.

By Kevin Foster

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20/12/24

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Washington, 20 December (Argus) — The US House of Representatives voted overwhelmingly today to extend funding for US federal government agencies and avoid a partial government shutdown. The Republican-controlled House, by a 366-34 vote, approved a measure that would maintain funding for the government at current levels until 14 March, deliver $10bn in agricultural aid and provide $100bn in disaster relief. Its passage was in doubt until voting began in the House at 5pm ET, following a chaotic intervention two days earlier by president-elect Donald Trump and his allies, including Tesla chief executive Elon Musk. The Democratic-led Senate is expected to approve the measure, and President Joe Biden has promised to sign it. Trump and Musk on 18 December derailed a spending deal House speaker Mike Johnson (R-Louisiana) had negotiated with Democratic lawmakers in the House and the Senate. Trump lobbied for a more streamlined version that would have suspended the ceiling on federal debt until 30 January 2027. But that version of the bill failed in the House on Thursday, because of opposition from 38 Republicans who bucked the preference of their party leader. Trump and Musk opposed the bipartisan spending package, contending that it would fund Democratic priorities, such as rebuilding the collapsed Francis Scott Key Bridge in Baltimore, Maryland. But doing away with that bill killed many other initiatives that his party members have advanced, including a provision authorizing year-round 15pc ethanol gasoline (E15) sales. Depending on the timing of the Senate action and the presidential signature, funding for US government agencies could lapse briefly beginning on Saturday. Key US agencies tasked with energy sector regulatory oversight and permitting activities have indicated that a brief shutdown would not significantly interfere with their operations. But the episode previews potential legislative disarray when Republicans take full control of Congress on 3 January and Trump returns to the White House on 20 January. Extending government funding beyond 14 March is likely to feature as an element in the Republicans' attempts to extend corporate tax cuts set to expire at the end of 2025, which is a key priority for Trump. The Republicans will have a 53-47 majority in the Senate next month, but their hold on the House will be even narrower than this year, at 219-215 initially. Trump has picked two House Republican members to serve in his administration, so the House Republican majority could briefly drop to 217-215 just as funding for the government would expire in mid-March. Congress will separately have to tackle the issue of raising the debt limit. Conservative advocacy group Economic Policy Innovation Center projects that US borrowing could reach that limit as early as June. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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US government agencies set to shut down

20/12/24

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20/12/24

US government agencies set to shut down

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Investment funds cut net long positions on Ice TTF

20/12/24

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20/12/24

Investment funds cut net long positions on Ice TTF

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Viewpoint: More changes for Dated crude benchmark ahead

20/12/24

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20/12/24

Viewpoint: More changes for Dated crude benchmark ahead

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Australia’s Cleanaway, LMS to produce landfill gas

20/12/24

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20/12/24

Australia’s Cleanaway, LMS to produce landfill gas

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