Catholic Bishops Reject Banks Funding Coal Power Plants

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Through Marielle C. Lucenio

The country’s CATHOLIC bishops have said they will withdraw resources from banks that continue to fund coal projects by 2025 and reject donations from “destructive” industries.

“We must not allow the financial resources of our Catholic institutions to be invested in favor of coal-fired power plants, mining companies and other destructive extractive projects,” the Catholic Bishops wrote in their “Pastoral Letter on Ecology published on January 1. 29.

These decisions, which the Philippine Conference of Catholic Bishops (CBCP) made after a two-day online plenary assembly, were reinforced by the leadership of Pope Francis and call for more investment in renewable energy.

The bishops urged the priests to discuss with their respective banks where they deposit their financial resources and to demand that they develop policies and plans to phase out their exposure to coal, fossil gas and destructive energy.

“Without clear commitments and policies from these banks to divest from fossil fuels, we commit to withdrawing all of our resources that are with them no later than 2025, and holding them accountable to their fiduciary duties and obligations. morals as climate actors,” the bishops wrote. .

They also affirmed a “policy of non-acceptance” of any kind from owners or operators and anyone in the extractive industries, especially those in coal, fossil gas, mining, quarrying and logging, regardless of the scale of operations.

“Our people have to be very critical, especially our priests. Although we have many needs in our pastoral work, let us not compromise the well-being of our environment,” CBCP President Bishop Pablo Virgilio S. David said Saturday at a press conference.

Bishop Gerardo A. Alminaza of the Diocese of San Carlos and leader of the coal phase-out urged companies to turn their backs on “dirty energy”.

“We challenge them to take the CBCP Pastoral Letter on Ecology as an invitation to show real leadership in advancing climate action by ending their fossil fuel funding and leading the way. to a future powered by clean energy from renewables,” he said in a separate statement. .

In October 2020, the Department of Energy decreed a moratorium on new coal-fired power plant projects for a more sustainable energy mix.

Several banks have pledged not to finance new coal-fired power plant projects.

The Bank of the Philippine Islands (BPI) aims to halve coal financing in its portfolio by 2026, exit coal financing as early as 2033, and reach zero lending to the sector by 2037.

In 2020, Rizal Commercial Banking Corp. (RCBC) said its entire banking system is moving towards making its loan available only for non-coal projects.

BDO Capital & Investment Corp. Chairman Eduardo V. Francisco said at the Energy Investment Forum on Dec. 3, 2021 that the company will discuss with the Asian Development Bank to explore lending opportunities for coal projects. to avoid stranded assets for coal. investors and support the country in the energy transition.

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