Myanmar: AIIB reportedly backs coal-fuelled project through intermediary, despite green commitments
"Why is the world’s newest development bank investing in coal despite its green promise?", 21 Jun 2018
…Asian Infrastructure Investment Bank (AIIB)...President Jin Liqun…told last year’s annual meeting that the AIIB “will not consider any proposals if we are concerned about their environmental and reputational impact”, and proudly proclaimed “there are no coal projects in our pipeline”. But a year later, the AIIB has already invested in coal. A report by Bank Information Center Europe and Inclusive Development International reveals how the AIIB’s investment through a financial intermediary has led the institution down a carbon fuelled path.
In September 2017, AIIB backed the IFC Emerging Asia Fund (EAF), which subsequently bought equity in Shwe Taung Cement for expansion of a cement plant in Myanmar. The investment will fund a new kiln to increase production significantly, as well as more than double the output from a coal mine that supplies the plant exclusively…
This back-door investment is a worrying sign that the AIIB may not stick to its green commitments as it prepares to invest $100 billion in new infrastructure projects in Asia and beyond. Asia is on the front line of the fight against climate change…