NGO calls on ADB to stop 'dirty' investments on energy projects

Japan-led Asian Development Bank (ADB) must stop its "dirty" investments on energy projects, especially those related to coal-fired power plants, a civil society organization (CSO) umbrella group said Tuesday.

"ADB's track record on energy investment is dirty. From 2007 to 2014, ADB invested in over [$]3 billion in coal projects," the NGO Forum on ADB said in an emailed statement.

Based in Quezon City, the NGO Forum on ADB is composed of non-government organizations from the Philippines, Asia and the Pacific, Europe, and the United States of America.

"We call on the ADB in its 50th year to recognize the historical harm (legacy harm) which its projects have done to the environment and continue to do (Naga Coal Plant, Tata Mundra etc.) and immediately take the necessary measures to mitigate the environmental and social damages and stop all project operations," it said.

Citing data from the Natural Defense Council, the group said ADB was the third largest financier of coal-fired power plants from 1994 to 2012.

"Some of these coal projects have led to severe environmental and social damage," it said.

Among those said to have caused environmental damage are the $120-million Naga coal-fired power plant in the Visayas Region, the $900-million Jamshoro coal-fired power plant in Sindh, Pakistan, and the $450-million Tata Mundra Ultra Mega Coal plant in Gujarat, India.

"All of these projects have led to severe ecological harm, loss of livelihood, displacement, air and water pollution and health hazards," the NGO Forum said.

Moving forward, the NGO Forum called on the ADB to "live up to its rhetoric" and assist countries to deliver their climate goals under the Paris Agreement.

Under the Paris deal agreed upon in 2015, signatories have agreed to cut down greenhouse gas emissions in efforts to limit global warming to 1.5 degrees Celsius.

ADB's side

Sought for comment, the ADB defended financing coal-based power projects, citing the need for such facilities.

"ADB would only consider supporting coal-based power projects when they are needed to enhance the quality and reliability of a country's energy supply — on the condition that cleaner technologies are adopted and adequate mitigation equipment and measures are incorporated into the project design," it said in an email, when asked for a response to the claims of the NGO Forum.

"In such cases, ADB undertakes a detailed study of a country's power situation before deciding whether to support a coal power plant. Any project approved by our Board must adhere to our stringent social and environment safeguards, including air-quality standards," it added.

The Manila-based lender said it has an annual target budget allocation of $2 billion for clean energy projects. It spent $2.54 billion for renewable energy projects, the sixth consecutive year it has exceeded the target. —KG, GMA News