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DBS to stop funding 'dirty-coal' projects by year end

Press Trust of India  |  Singapore 

The will stop financing 'dirty-coal' or low-grade projects by the end of this year, but continue to support ventures in emerging markets that uses higher-quality coal, a top official has said.

The Singapore-headquartered bank, which is rated among the largest in Asia, will also focus on funding renewable projects, said.

At a financial results briefing yesterday, bank's he said that the will stop financing projects that burn low-grade coal, also known as "dirty coal", by the end of the year.

But, he was quick to assure that the will continue to lend to projects in emerging markets that burn "higher quality" coal, at the same time start developing a portfolio of renewable projects to shift the mix of its loans.

"In respect of coal, we start with one caveat: We have got to remember that the bulk of needs in our part of the world are from coal," he said.

Citing global on coal, according to which by 2040 it would still account for about 40 per cent of the power generation mix, he said, "It is important to understand that you can't turn this off."

"It's not that straightforward an outcome, for either society or the So you've got to be thoughtful about how we transition," Gupta was quoted as saying by the

DBS has still struck a few deals linked to burning such "low-grade" this year, and will not pull out of these loans due to pre-commitment.

A report, last month, by Australian environmental advocacy group 'Market Forces' said banks DBS, and have financed 21 project deals since 2012 worth USD 2.29 billion.

Of these, more than half were for coal-fired power plants that are mostly in and

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, February 09 2018. 15:00 IST