Security Bank Corporation has announced that it will entirely cease financing of all new coal-fired power plant projects in the Philippines by 2023. The bank will instead focus on increasing its financing of low carbon energy projects and new clean technologies. It will provide financing and capital market assistance to its clients.
This makes Security Bank one of the third major banks to halt funding for coal-related projects in the next 10 years, following the Bank of the Philippine Islands and Rizal Commercial Banking Corporation. The move has been anchored under the bank’s Environmental and Social Risk Management System (ESMRS).
This is also in line with the Government of the Philippines’ goal of transitioning away from coal-fired energy. Under the Philippine Energy Plan 2020-2040, the government aims to increase renewable energy’s share in total power generation to 35 per cent by 2030 and 50 per cent by 2040.