AIIB must deliver real ‘clean and green’ growth: leading South Asian civil society network

Media Release, June 9, 2017

With the Asia Infrastructure Investment Bank (AIIB) due to finalize its Energy Sector Strategy in the coming days, the leading South Asian civil society network on debt and development is calling on its leadership to stand strong on its ambition of delivering “Lean, Clean and Green” infrastructure for the region.

“Communities around Southeast Asia are in need of sustainable and reliable energy supply. The AIIB is in a position to deliver this, but it must come from clean renewable energy and not from out-dated coal-fired power stations,” said Lidy Nacpil, Coordinator – Asian Peoples Movement on Debt and Development (APMDD).

“The reality is that many communities around Southeast Asia are already suffering from appalling air quality and the impacts of climate change as a result of burning fossil fuels. No matter how its proponents spin it, coal can never be clean.”

“AIIBs leadership can play a vital role in catalyzing the finance required to scale up the renewable energy and develop the sustainable transport which will be the cornerstones of our growth over the decades to come.”

The AIIBs new ‘Energy Sector Strategy’ is due to be unveiled at Jeju in South Korea in mid-June and while its President, Jin Liqun, has stated his desire to become a responsible lender, vested interests in the coal sector continue to pressure the lender to weaken its ‘clean and green’ mandate in order to sustain their failing business model.

“With the incoming President of South Korea also promising to shut down coal plants and re-assess those in the pipeline, once again we are seeing that countries in this region are rejecting fossil fuels in favour of a newer and better renewable technology,” said Nacpil.

“The AIIB need only look at India where solar power is now cheaper than imported coal and competitive with domestic coal plants, with costs declining fast as technology and efficiency improve.”

This month, costs for solar in India hit another record low of US$37/MWh, dropping an astounding 45% since January 2016 when India’s solar record low was set. In the past two weeks alone, 7.6GW of proposed new coal plant proposals have been abandoned in India for the simple reason they can no longer compete on price.

“Southeast Asia is growing and the AIIB can be an essential component. But our clear ask is that our energy future is genuinely clean and green. And that means renewable energy.”

For more information contact:

Lidy Nacpil +639178800410 | [email protected]