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Home News Asia

Church slams World Bank for funding coal projects in Philippines

April 29, 2024
in Asia

Lawyer Aaron Pedrosa from the Philippines takes part in a protest to urge the World Bank to stop financing fossil fuel projects in Asian nations in Washington on Apr 19 (Photo: Supplied)

By Ronald O. Reyes

Apr 29 2024

PHILIPPINES – Church leaders and climate activists have found fault with international lending agencies, including the World Bank, for funding fossil fuel and coal projects in the Philippines.

“We stand in solidarity with the communities which are hit by coal power projects,” said Father Warren Puno, director of the ministry of ecology in south-central Luzon.

“This is a matter of life and death. We cannot simply stand by and watch our community suffer,” added the regional coordinator of the South Luzon Eco-Convergence Hub of Caritas Philippines.

Puno told UCA News on Apr 23 that they were pushing for remedies for all coal-affected communities.

“We are seeking compensation for damages, health care support, and a just transition to clean energy,” he said.

Puno’s remarks came after the International Monetary Fund (IMF) and the World Bank held their annual meetings last week in Washington to discuss debt relief and climate finance.

In the Philippines, the International Finance Corporation (IFC), a subsidiary of the World Bank, is reported to be financing 10 projects.

In the Luzon region, the projects were located in Mauban, Calaca, Masinloc, Limay, and Mariveles.

In the Visayas region, they are located in Toledo City and Iloilo City. In Mindanao, they are situated in Kauswagan, Maasin, and Malita.

The projects have “clear financial links between IFC and a private bank” in the Philippines, said lawyer Aaron Pedrosa, lead counsel for the Philippines Movement for Climate Justice.

We have filed a complaint with the World Bank because we believe that it has a responsibility to ensure that its investments do not harm local communities, said Father Puno.

“If the World Bank is serious about building a sustainable planet, it must end all direct and indirect financing of fossil fuels,” said Pedrosa, who went to Washington on Apr 19 to join a demonstration against the World Bank.

It must suggest remedies for all communities affected by its coal-funded projects in the Philippines,” demanded Pedrosa.

In the Philippines alone, we have filed complaints against 19 coal projects, Pedrosa noted.

On April 24, climate activists held another round of protests in front of the Japanese embassy to urge the Japan Bank for International Cooperation (JBIC) to end financing of fossil fuel projects in Southeast Asia.

“Despite public commitments to achieving net-zero emissions, JBIC remains a significant financier of fossil gas expansion in Asia, particularly in Southeast Asia,” said Lidy Nacpil, coordinator of Asian Peoples’ Movement on Debt and Development.

Citing a report by the Center for Energy, Environment and Development, Nacpil said JBIC is the region’s biggest lender for fossil fuels, investing an estimated US$3.3 billion.

However, in a statement published on its website, the JBIC has reiterated its commitment to sustainable development.

We “will proactively contribute toward fostering global sustainable development to ensure the realization of sustainable societies by actively supporting initiatives that promote decarbonization,” the Japanese bank said.

The Intergovernmental Panel on Climate Change estimated that all fossil fuel infrastructure — whether existing or still being planned — are expected to emit enough carbon dioxide to cause global temperature to rise over 1.5°C. – UCA News

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