{"id":641,"date":"2020-09-25T09:32:01","date_gmt":"2020-09-25T09:32:01","guid":{"rendered":"http:\/\/eos.co.id\/main\/?p=641"},"modified":"2020-09-25T09:33:57","modified_gmt":"2020-09-25T09:33:57","slug":"world-banks-ifc-adopts-new-climate-rules-to-deter-lenders-from-backing-coal","status":"publish","type":"post","link":"https:\/\/eos.co.id\/main\/uncategorized\/world-banks-ifc-adopts-new-climate-rules-to-deter-lenders-from-backing-coal\/","title":{"rendered":"World Bank’s IFC adopts new climate rules to deter lenders from backing coal"},"content":{"rendered":"\n
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By Matthew Green<\/a><\/p>\n\n\n\n

2 MIN READFILE PHOTO: The World Bank headquarters building is decorated ahead of the IMF\/World Bank spring meetings in Washington, U.S., April 8, 2019. REUTERS\/Yuri Gripas\/File Photo<\/p>\n\n\n\n

LONDON (Reuters) – The World Bank\u2019s private-sector arm has introduced new climate change conditions for its investments in commercial banks to encourage the lenders to wind down support for coal projects in Africa and Asia.<\/p>\n\n\n\n

The International Finance Corporation (IFC), which owns equity stakes in many large commercial banks in emerging markets, hopes the restrictions will trigger other investors to exit the coal sector.<\/p>\n\n\n\n

\u201cI think this is an important milestone. If we look historically, our environmental policies and procedures have been adopted by both other development finance institutions and the market in general,\u201d Peter Cashion, head of climate finance in the IFC\u2019s Financial Institutions Group, told Reuters.<\/p>\n\n\n\n

Under the new rules, in effect since July last year but published on Sept. 17, the IFC will no longer make equity investments in financial institutions that do not have a plan to phase out support for coal. The IFC will also use various conditions attached to its existing and new equity investments to ensure that the banks involved reduce their exposure to coal to zero by 2030.<\/p>\n\n\n\n

The IFC exerts considerable influence over commercial banks in emerging markets, which often turn to the Washington-based lender for both access to capital and the kind of governance expertise that helps them build credibility among investors.<\/p>\n\n\n\n

Apart from the IFC\u2019s being a major investor in its own right, its standards are widely adopted by the private sector.<\/p>\n\n\n\n

Climate change campaigners welcomed the move, saying it sent a clear message to the commercial banking and insurance sectors that public finances would no longer be made available for institutions backing coal projects.<\/p>\n\n\n\n

\u201cWe expect an avalanche of different institutions to adopt a similar approach, it will have a huge impact,\u201d Nezir Sinani, co-director of Recourse, a Netherlands-based nonprofit organisation which has been lobbying the IFC, told Reuters.<\/p>\n\n\n\n

Reporting by Matthew Green; Editing by Leslie Adler<\/p>\n\n\n\n

Our Standards:\u00a0The Thomson Reuters Trust Principles.<\/a><\/p>\n\n\n\n

https:\/\/www.reuters.com\/article\/climate-change-coal-idUSKCN26F06Y<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Matthew Green 2 MIN READFILE PHOTO: The World Bank headquarters building is decorated ahead of … Continue ReadingWorld Bank’s IFC adopts new climate rules to deter lenders from backing coal<\/span><\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/eos.co.id\/main\/wp-json\/wp\/v2\/posts\/641"}],"collection":[{"href":"https:\/\/eos.co.id\/main\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eos.co.id\/main\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eos.co.id\/main\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eos.co.id\/main\/wp-json\/wp\/v2\/comments?post=641"}],"version-history":[{"count":2,"href":"https:\/\/eos.co.id\/main\/wp-json\/wp\/v2\/posts\/641\/revisions"}],"predecessor-version":[{"id":644,"href":"https:\/\/eos.co.id\/main\/wp-json\/wp\/v2\/posts\/641\/revisions\/644"}],"wp:attachment":[{"href":"https:\/\/eos.co.id\/main\/wp-json\/wp\/v2\/media?parent=641"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eos.co.id\/main\/wp-json\/wp\/v2\/categories?post=641"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eos.co.id\/main\/wp-json\/wp\/v2\/tags?post=641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}