Connecting The Dots - Following Fossil Fuels Finance in Asia

Connecting the dots FOLLOWING FOSSIL FUEL FINANCE IN ASIA

CREDITS AND COPYRIGHT 00 EDITORIAL CONSULTANT/COORDINATOR JOSEPH EDWARD ALEGADO EDITORIAL TEAM DRUE SLATTER KATHLEEN LIMAYO IRFAN TONI HERLAMBANG WRITERS ANNELISE GISEBURT DHANA KENCANA MARIEJO RAMOS MOHAMMED MOSTOFA YEOSUF PHOTOS IRENE BARLIAN YUMA KONISHI KATHLEEN LEI LIMAYO ABDULLAH ALL MAFUJ REVIEWERS CHUCK BACLAGON FIRDAUS CAHYADI MASAYOSHI IYODA FARZANA FARUK JHUMU ILLUSTRATIONS AND LAYOUT DENISE TOLENTINO The text of this work is licensed under the Creative Commons Attribution-NonCommercial- NoDerivatives 4.0 International License. To view a copy of the license, visit https://creativecommons.org/licenses/by-nc-nd/4.0/ The license does not apply to photos, graphs and all other visual elements, for which existing copyrights are retained by the respective owners.

table of contents INTRODUCTION 4 CASE STUDIES 6 7 MATARBARI, BANGLADESH 11 INDRAMAYU, INDONESIA 17 BATAAN, PHILIPPINES JAPANESE FINANCE, ENERGY PLANS KEEP FOSSIL FUELS ALIVE IN ASIA 23 THE WAY FORWARD 28

INTRODUCTION

INTRODUCTION 00 Asia has been touted as the battleground THIS DIGITAL BOOK IS A PRODUCT OF for resistance against dirty energy. In 2017, a report from environmental group Market INVESTIGATIVE STORY GATHERING Forces revealed that the boom in coal-fired power in Asia is being financed by foreign TRIPS TO COMMUNITIES IN governments and banks through export credit agencies or development banks. MATARBARI IN BANGLADESH, However, developed countries in the region like Japan have played a big role in fuelling BATAAN IN THE PHILIPPINES, AND investments in dirty energy while grassroots communities in developing INDRAMAYU IN INDONESIA. A countries like the Philippines, Indonesia, and Bangladesh are reeling from the CHAPTER IS ALSO DEDICATED TO THE variegated impacts of coal energy plants. Low-income communities continue to suffer LINK TO FOSSIL FUEL INVESTMENTS from impacts to health, loss of livelihoods and human rights violations. These BEING MADE IN THE BOARDROOMS communities are sacrificed because of a false promise of progress to their respective OF BANKS LOCATED IN JAPAN. governments. Four investigative journalists produced Despite these, communities are putting up compelling human-interest stories detailing a fight against fossil fuel investments. And the various impacts of these coal power it is with this realization that 350.org Asia plants to local communities who have been has decided to embark on this immersive resisting the fossil fuel industry. storytelling project - Connecting the Dots, in order to follow the money from the This immersive book also features high- downstream impacts of fossil fuels to the quality multimedia content, photos, videos, investments and institutions enabling this and visually compelling illustrations that dirty energy. communicate the big picture - impacts to grassroots communities of fossil fuel This digital book is a product of investments and these megabanks’ gravi- investigative story gathering trips to tation towards market-based “false communities in Matarbari in Bangladesh, solutions” such as gas, hydrogen, ammonia, Bataan in the Philippines, and Indramayu in and carbon capture and storage (CCS) that Indonesia. A chapter is also dedicated to do not address the problem at source. All of the link to fossil fuel investments being these are perpetuating capitalist pursuit of made in the boardrooms of banks located in infinite growth, creating conditions for Japan. future dependence on dirty energy. But there is still an alternative. Clearly, we need to invest in community-based and grassroots-led solutions that invest in the well-being of people and of the planet. This could look like bilateral and multilateral climate finance agreements that are transparent and inclusive in their delibe- rations. This could also look like community-led solar energy projects that are owned and operated by those who need it most. Whatever the case, any and all solutions must be grounded in justice, equity and energy justice for all. -The Editorial Team

CASE STUDIES

CASE STUDIES - MATARBARI, BANGLADESH 00 empty promises and the fight for justice BY MOSTAFA YOUSUF LOCALS EVICTED BY THE MATARBARI POWER PLANT ARE STILL LEFT IN THE LURCH. FISHERFOLK NEAR THE MATARBARI COAL PLANT. PHOTO: ABDULLAH ALL MAFUJ Afsari Begum* had better days before 2014. the family has been socio-economically Residing in the southern Bangladesh village devastated. Now a bleak, uncertain future of Matarbari, her husband and son had a looms large for Afsari Begum. steady-enough income to make ends meet for their family of five. Then, in August 2014, “Had my husband been with my family and the were promised a prosperous future. in the same profession, I would never have The government was acquiring “the lone lost him. We were a happy family. They source of the family’s income” — the salt assured us of prosperity at the time of field — in order to build a coal-based power taking our land, now we are down and out”, plant. she said. With the land devoured by the power plant, The government acquired a total of 2,820 both her family's breadwinners turned into acres of land for the power plant, the rickshaw pullers in the port city of construction of which is nearing an end, Chattogram, 160 kilometers north of affecting the livelihoods of 20,000 people Matarbari. However, her husband, in his 60s, who relied on salt, fish, crab, and shrimp could not continue this backbreaking farming in Matarbari village for their profession as his health was deteriorating. income. He succumbed to his illness and died a few months ago. Coal Power Generation Company Bangladesh Limited Bangladesh (CPGCBL) Six years after the acquisition of the land,

CASE STUDIES - MATARBARI, BANGLADESH 00 and JICA (Japan International Cooperation “I LOST MY HOME AND Agency) officials assured the locals of MY LAND TO THE POWER training to make them a skilled workforce PLANT. I LOST MY so that they could qualify themselves for IDENTITY BY LOSING MY jobs in power plants. This promise, like HOME AND LAND TO THE other commitments, remains elusive. PLANT. MY DECENT FAMILY LIFE HAS BEEN Take the example of Abdul Jobbar, one of TORN APART BY THE the 44 displaced locals in the acquisition BETRAYAL OF THE process, who has still been holding out AUTHORITIES.\" hope of a home promised by government officials six years ago. “I lost my home and my land to the power plant. I lost my identity by losing my home and land to the plant. My decent family life has been torn apart by the betrayal of the authorities. Now I live in a rented home costing me $50 a month. My two children dropped out of school as I failed to finance their education. “ Fight for Justice “The 36 homes allotted to the locals are low in quality. The structure would break apart Dissatisfied locals formed an organization in any major cyclone, which is a common to press home the need for rehabilitation of phenomenon on the island. The officials those affected by the coal-based power were delaying the allotment of the homes. plant titled “Platform to Safeguard Landless We held human chains, and sit-in programs People, Life, and Livelihood”. for the last five years to make it happen”, Mohsin added. Mohammad Mohsin, convener of the platform, said that those displaced were Mohsin could remember people from every supposed to be relocated and rehabilitated household being assured of training for a within six months of their displacement. job in the power plant. However, the power Out of 44 families, 36 were rehabilitated. plant authority brought laborers from Eight families are still uncertain of when outside the community instead of turning they will have a roof over their heads. the locals into a skilled workforce. They were told the hilly island would 50 year-old Jalil Mia, who had to leave his become as rich as Singapore, but CPGCBL fishing profession, said they protested the and JICA did not keep their word. Now the earth-filling of the river. Today, they still land is destroyed, people are displaced, and demand the government restore the river to their means of livelihood are obliterated. its previous status and give back their life and livelihood. The damage is multifaceted. The Kuhelia River, on which the fishing community “We did not seek any mercy. All we want is relied to make their living, was earth-filled justice”, Jalil added. by the Roads and Highway Department to build an approach road to the power plant. During the preparation of land for the construction of the power plant, canals were clogged up blocking the water flow into the sea, engendering flood during monsoon.

CASE STUDIES - MATARBARI, BANGLADESH 00 Earth-filling the Only River Many people moved away, leaving their families behind to sustain themselves, The Department of Environment, according disrupting the social and domestic fabric”, to an investigation, found the road built to he said. facilitate communication to the power plant earth-filled around 26 acres of river, Mohammad Mohsin, who is leading the choking it up and narrowing it into a drain. platform to safeguard life and livelihood, reported incidents of intimidation. Those ActionAid, a non-government organization, trying to speak out against the deprivation said in its report that the sediment of the and betrayal of authority are being silenced power plant blocked the drainage system either by law enforcers or local goons. and silting of the Kuhelia River. Matarbari is now a highly surveilled area, Between 2016 to 2018, 22 villages on three locals have said. occasions were flooded as the central canal and eight sluice gates were blocked, adding “They threaten that they will sue, arrest, or that 10,000 locals bore the brunt of the make us suffer in legal tangles to gag our flood that lasted for weeks. voices. But we are not giving up. This is the question of existence. We can’t be uprooted Abu Bakkar, secretary of the “Kuhelia River this way”, Mohsin continued. Protection Committee'' said the river used to serve 100,000 people as a safe path of The outlay for Matarbari Power Plant transporting goods. Salt produced in increased, now standing at $ 5.8 billion, Mohekhali used to be shipped using the with JICA providing $4.3 billion. The project river route. Thousands of fishermen used to was set to be completed in 2023, but after earn a livelihood fishing from the river. revision, it is expected to be completed in 2026. “Now everything is in the past”, Bakkar said, voicing frustration. *Name has been changed to protect the individual. “They did not leave any stone unturned — from holding protests, to having a dialogue with elected local representatives and officials, everything went unheard.

CASE STUDIES - MATARBARI, BANGLADESH 00 KIDS PLAYING NEAR THE MATARBARI COAL PLANT. PHOTO: ABDULLAH ALL MAFUJ References: https://www.thedailystar.net/news/bangladesh/news/matarbari-coal-fired-plants-nature-sacrificed-power-2231656 https://www.thedailystar.net/editorial/news/kohelia-being-killed-build-highway-2033877 https://www.thedailystar.net/environment/natural-resources/energy/news/matarbari-power-plant-2-units-start- production-january-2024-3132231 https://actionaid.nl/wp-content/uploads/2020/09/ActionAid_Magazine_Bangladesh.pdf

CASE STUDIES - INDRAMAYU, INDONESIA 00 Dust in The Wind BY DHANA KENCANA HOW A COAL POWER PLANT THREATENS LIVES AND LIVELIHOODS ON THE NORTH COAST OF JAVA FARMERS PLANTING RICE SEEDS IN MEKARSARI VILLAGE, INDRAMAYU. PHOTO: IRENE BARLIAN “Bleat bleat bleat bleat.” examined me and said that I had two health conditions; cataracts and a problem Surmi’s sheep won't stop bleating this in my retina,” says the female shepherd. afternoon. When their owner comes to feed them, they suddenly grow silent and calm. Surmi says she started to experience eye problems around two years ago. At that Surmi Warsan, born in Mekarsari Village in time, she worked on a farm two kilometres 1972, herds 19 sheep with care, in a six by east of a coal power plant called Indramayu three metre barn. She regularly visits the 1 Coal Power Plant. barn to clean it, feed the sheep, and check on their health. She often needs to find out While working, Surmi saw the coal power if there is a pregnant or sick sheep in the plant’s chimneys releasing black, brown, herd. and orange smoke for days. As a daily farm labourer, she did not have any choice. She Surmi has done this twice a day, every was required to keep working to make ends morning and afternoon, for the last five meet. Then, something inevitable months. She chooses to herd the sheep as happened. Surmi was exposed to the dust her body does not allow her to work on a released by the power plant coming in with farm after a doctor discovered an issue with the wind from the west. Her eyes were in her eyes. agony. “My eyes hurt. That’s why I wear glasses. At first, she tried to shake it off. But as time Seeing something 1.5 metres away is un- passed, Surmi still suffered pain in her eyes, clear to my eyes, blurry. The doctor and they continued producing a solid dark- coloured discharge.

CASE STUDIES - INDRAMAYU, INDONESIA 00 “I thought it was a common eye problem. I “My eyes have a problem. I can’t see clearly tried eye drop medication, but it didn’t now. If you are a farmer, vision is essential. work. Then, I visited an ophthalmologist. You require it to plant, mow, and check the After five examinations and one injection, rice plants. When working on the farm, I my eyes haven’t recovered, and my vision was near to the dust. I am now far away and hasn’t gotten better,” she recalls the dark still exposed,” says Surmi. period in her life. Surmi wishes Indramayu 1 Coal Power Plant \"I CAN’T SEE CLEARLY would halt operations, as they have been NOW. IF YOU ARE A proven to put her and her community in FARMER, VISION IS danger. Besides material loss, the coal ESSENTIAL. YOU power plant also harms people’s access to REQUIRE IT TO PLANT, their basic rights of health, education, and MOW, AND CHECK THE food. RICE PLANTS. WHEN WORKING ON THE FARM, She says she is a victim of Indramayu 1 Coal I WAS NEAR TO THE Power Plant’s development since now she DUST. I AM NOW FAR has to live with the bitter reality that her AWAY AND STILL eyes are damaged. In addition to that, she EXPOSED,” also suffers from a long dry cough as the result of dust exposure produced by the That tough situation forced Surmi to lose power plant. her job as a daily farm labourer, a job she had done for almost half her life. However, Aeni April Nuria and Surmi share a similar even after deciding to become a shepherd, story. Aeni lives 1.5 kilometres away from she is still exposed to the dust produced by Surmi’s house. She firmly keeps the memory Indramayu 1 Coal Power Plant, even though of things that happened to her in 2017. her sheep barn is five kilometres away from the coal power plant run by PT Pembangkit Her mother, Raminih, says she was Jawa Bali (PJB), a subsidiary of a state- suspicious of Aeni’s abnormal growth. Her owned electricity company PT Perusahaan daughter was steadily losing weight and Listrik Negara (PLN). suffered shortness of breath and a constant dry cough. Worrying about her daughter’s deteriorating situation, Raminih brought Aeni to Sidawangi Lung Hospital in Cirebon. She was then presented with a harsh reality when the doctor diagnosed Aeni with lung spots, resulting from poor air conditions. The diagnosis shocked Raminih. She never imagined that Aeni would have to endure spots on her lungs when she was only eight years old. “Based on the X-ray images, the doctor discovered that my daughter has lung spots. The doctor then asked if I lived near the coal power plant, and I said yes.\"

CASE STUDIES - INDRAMAYU, INDONESIA 00 \"For Aeni's condition, the doctor told me to RAMIINIH AND AENI HOLD UP AN XRAY SHOWING LUNG SPOTS. always maintain cleanliness, especially PHOTO: IRENE BARLIAN avoiding dust and air around the house,” she says when we visit her house in of coal needed by Indramayu 1 Coal Power Mekarsari Village, Patrol District, Indramayu Plant is 4.2 million tons per year. Regency. The coal is supplied from Kalimantan and Aeni’s health improved after the hospital Sumatera by the likes of PT Arutmin visit, but she has not fully recovered yet. Indonesia, PT Kaltim Prima Coal, PT Kideco She still undergoes outpatient treatment Jaya Agung, PT Bukit Asam, and PLN and has a dry cough to this day. This cough Batubara. can worsen when the weather is hot or when entering the dry season. Momentum for energy transition Raminih does not dismiss that Aeni’s Most of the coal power plants in Indonesia mental health is affected too by her chronic are located in coastal areas, like PLTU health condition. She looks traumatised and Indramayu 1 on the north coast, which has been a quiet child ever since. adjoins Java Island’s North Coast (Pantura). Besides her daughter’s deteriorating These coal power plants need vaste physical and mental health situations, amounts of water to dissipate the heat Raminih’s access to food is also affected by made by the electricity generation process. Indramayu 1 Coal Power Plant activity. Water becomes the main driver for the coal Before, she could easily retrieve vegetable power plant’s turbines. supplies from local farms. Now, everything is gone. The need for water in large volumes is met by the largest water source surrounding the Dust released by the power plant chimneys power plant’s area, the sea. Sea water is affects the environment where she lives and used to dissipate the heat when the power damages soil quality and plant productivity. plant is working and the process of thermal waste disposal affects the surrounding “Before the Indramayu 1 Coal Power Plant, I ocean area. could harvest the vegetables on the farm and eat them right away, or I could cook them in the kitchen at ease. Now, most of the plants are dead. Vegetables that can survive the dust can't be eaten right away as they need to be cleaned thoroughly. If not, they can be contaminated with poisonous dust from the coal power plant,” Raminih tells us.\" Supplier closest to the ruler Indramayu 1 Coal Power Plant stands on 83 hectares of land in Sumuradem Village, Sukra District, Indramayu Regency, West Java Province, Indonesia. Its total capacity is 3x330 megawatts (MW) which provides electricity for Java and Bali, particularly for West Java and Jakarta. The coal power plant was built in 2007 by the consortium of China National Machinery Industry Corp (SINOMACH), China National Electric Equipment Corp (CNEEC), and PT Penta Adi Samudera. The estimated amount

CASE STUDIES - INDRAMAYU, INDONESIA 00 The thermal waste is streamed through canals to the sea. The waste affects the sea’s salinity (salt level) and increases the chemical toxicity that then stirs fish migration. This condition has reduced fisherfolks catch to 20 kilograms and causes the rarity of fish in Ujunggebang Indramayu. Soon after the coal power plant began operations, the local fisherfolk stopped seeing pomfret and silver pomfret fish in surrounding waters. Waters surrounding PLTU Indramayu 1 have also been found to be polluted with heavy metals like mercury and lead. The amount of harm caused has led the government to plan the early retirement of a number of coal power plants in Indonesia through the Just Energy Transition Partnership (JETP) programme, from the International Partners Group (IPG) led by the United States and Japan. The programme was announced by the Indonesian government during the G20 Summit in Bali in November 2022. The US$20 billion programme is financial A STRUGGLING FARMER LOOKS UP AT THE INDRAMAYU support for Indonesia's energy transition as COAL PLANT. PHOTO: IRENE BARLIAN a step to accelerate the retirement of coal- fired power plants to switch to renewable energy that does not harm the community.

CASE STUDIES - INDRAMAYU, INDONESIA 00 Indonesia has ratified the Paris Agreement agreed at the COP 21 Summit in 2015. Through the agreement, Indonesia and other countries are committed to accelerating the decarbonisation process and maintaining the global temperature target at 1.5 degrees Celsius, through a Nationally Determined Contribution (NDC) that must be updated every five years. How are these coal companies faring? Kadin (Chamber of Commerce and Industry) is a business organisation established under Law 1. PT Arutmin Number 1 of 1987. The organisation's Articles For information, PT Arutmin Indonesia is a of Association and Bylaws are also regulated subsidiary of PT Bumi Resources Tbk (BUMI) in a Presidential Decree (Kepres). Although which is under the banner of the Bakrie only as a government partner, not a few Kadin Group, owned by Aburizal Bakrie. Aburizal officials have succeeded in becoming public Bakrie is a politician from the Golkar Party - officials, even sitting as ministers. the largest party in Indonesia since the New Order era under President Soeharto. Aburizal University of Indonesia (UI) economist, Faisal Bakrie also served as Coordinating Minister for Basri, in an online discussion held by Economic Affairs under President Susilo Transparency International Indonesia (TII), Bambang Yudhoyono. Thursday, 15 April 2021, stated that Kadin's closeness to the government is reflected in PT Arutmin Indonesia's mining area reaches government policies that are considered pro- 57,107 hectares (ha) in South Kalimantan with business. One example is the Omnibus Law. a production capacity of 6.5 million tonnes per year. Kideco Jaya Agung, which was established in 1982, has a 47,500 ha coal mining concession In the era of President Joko Widodo, PT in Paser Regency, East Kalimantan, about 100 Arutmin Indonesia received a 10-year kilometres from the Indonesian New Capital extension of its Special Mining Business (Ibu Kota Nusantara/IKN). Licence (IUPK) contract. The permit was submitted on November 2, 2020, just as According to the Directorate General of Jokowi signed the Omnibus Law (UU Cipta Mineral and Coal of the Ministry of Energy and Kerja). Mineral Resources (ESDM), 40 percent of Kideco Jaya Agung's shares are owned directly 2. PT Kaltim Prima Coal (KPC) by INDY. The remaining 51 percent is held Apart from PT Arutmin Indonesia, Aburizal through PT Indika Inti Corpindo and 9 percent Bakrie's PT Kaltim Prima Coal (KPC) also by South Korea's Samtan Co, Ltd. supplies coal to PLTU 1 Indramayu. 4. PT Bukit Asam The company, headquartered in Sangatta, East The majority shareholder of PT Bukit Asam Kalimantan, manages a mining concession (PTBA) is the Indonesian government, through area of 84,938 ha with a coal production state-owned enterprise (SOE) PT Indonesia capacity of around 70 million tonnes per year. Asahan Aluminium (Inalum), at 65.93 percent. KPC also has representative offices in Jakarta, Other shareholders are 33.78 percent and Samarinda, and Balikpapan. treasury shares are 0.29 percent. The President Director of KPC has been held 5. PT PLN Batubara by Adika Nuraga Bakrie, known as Aga Bakrie, PT PLN Batubara is a subsidiary of PT PLN since April 28, 2022. He is the son of Nirwan (Persero) in the coal mining sector. Until the Dermawan Bakrie, brother of Aburizal Bakrie. end of 2020, PLN Batubara managed four mine sites. Among others, in Sarolangun, Musi 3. PT Kideco Jaya Agung Rawas, Banjarbaru, and East Kalimantan. The next supplier is PT Kideco Jaya Agung, a subsidiary of PT Indika Energy Tbk (INDY), Throughout 2019, the company supplied 24.02 whose President Director is Arsjad Rasjid, who million metric tonnes of coal to dozens of is the Chairman of Kadin for the 2021-2026 power plants, including PLTU 1 Indramayu. period.

CASE STUDIES - INDRAMAYU, INDONESIA 00 MEMBERS OF JATAYU HOLDING A DEMONSTRATION ON THE COAST OF MEKARSARI VILLAGE. PHOTO: IRENE BARLIAN References: https://www.cnnindonesia.com/ekonomi/20220111151557-85-745251/profil-pln-batubara-anak-usaha-pln-yang- terancam-dibubarkan https://kumparan.com/kumparanbisnis/perusahaan-batu-bara-aburizal-bakrie-dapat-perpanjangan-kontrak-10-tahun- 1uWtUDexLIl/1 https://market.bisnis.com/read/20220831/192/1572871/historia-bisnis-sebelum-kpc-jatuh-ke-bumi https://www.suara.com/bisnis/2022/01/11/153706/ini-daftar-deretan-perusahaan-ri-yang-kaya-raya-berkat-keruk-batu- bara?page=2 https://katadata.co.id/safrezifitra/indepth/60b44408b884d/jejaring-kadin-di-pemerintahan-dari-jabatan-publik- hingga-kebijakan https://www.cnbcindonesia.com/market/20221020142252-17-381277/agresif-akuisisi-pembangkit-listrik-siapa-pemilik- ptba

CASE STUDIES - BATAAN, PHILIPPINES 00 THE SILENT WAR OF BATAAN BY MARIEJO S. RAMOS AS A 600-KILOWATT COAL-FIRED POWER PLANT THREATENS THE COMMUNITY’S HEALTH AND LIVELIHOOD,RESIDENTS CALL FOR A HEALTH STUDY TO EXPLAIN THE ONSLAUGHT OF SKIN AND RESPIRATORY DISEASES IN THEIR TOWN FISHERFOLK IN LIMAY, BATAAN AFFECTED BY LIMAY POWER PLANT. PHOTO: KATHLEEN LEI LIMAYO During World War II, soldiers from Bataan Surrendering is not an option for this province joined the main resistance of the community of 18,000, whose members have Americans in the war against the Japanese. been fighting for their land and life since 2013. But the long period of battle eventually left Filipino fighters defenseless, as they Cherry Magracia, 50, of Lamao village in suffered from hunger, wounds, disease, and Limay town, said it was then largely death. unknown that a global power plant would be built in their community. Today, the people of a coastal town in Limay, Bataan province believe that the She said they were not consulted about the enemy is no longer foreign invaders, but a plan. 600-kilowatt coal-fired power plant built on their land. The project came to be known as the Limay Power Station of San Miguel Corporation They remain at war with the daily whiff of Consolidated Power Corp — (SMCCPC), a white smoke from the plant’s chimneys and subsidiary of multinational conglomerate the ominous sound of its engines that spell San Miguel Corporation (SMC). the “slow death”—as they describe it—of residents who live just a few meters away Now connected to the national power grid, from the colossal structure. the coal plant started its commercial operations in May 2017.

CASE STUDIES - BATAAN, PHILIPPINES 00 Told to Leave Other community women who rallied then said they were often blocked by armed Magracia said it was only through security personnel and policemen. secondary channels that they knew about the proponents’ real intentions. They were “Why are you doing this to us?” I asked the being told to leave. police. “Are we criminals?” Carina Dellosa, 50, recalled asking. Magracia said the company offered to buy out the rights to their land for P25,000 to Their resistance stemmed from the lack of P300,000 (USD 460 to 5500), depending on proper relocation and their awareness of the size of their houses. the power plant’s potential damage to the community. “The compensation did not even cover the old trees that would be destroyed,” she “We wanted a relocation [site] where said. livelihood opportunities existed. And we want them to pay for the damages. That \"THAT STRUCTURE structure affected our health, our plants AFFECTED OUR HEALTH, and our river. But all we got are empty OUR PLANTS AND OUR promises, only verbal promises,” said RIVER. BUT ALL WE GOT Magracia. ARE EMPTY PROMISES, ONLY VERBAL Health impacts PROMISES,” Visitors in Lamao are greeted by a noxious The provincial governor’s office was smell—a faint stinging odor similar to supposed to shoulder three months of rent burning plastic, rotten eggs or paint at a temporary relocation area for families thinner. The unpleasant odor lingers in who would accept the offer. one’s nose, and gets stronger when the wind blows. “But it was unclear where the relocation site would be. And after those three Dealing with this issue every day became a months, how would we pay for the rent?” silent war for families who chose to stay. she asked. Malodorous fumes from the power plant While around 140 families were forced to often cause discomfort and distress among relocate, Magracia and her family chose to residents. stay. Ever since the coal plant was built, many of Together with other members of the Limay them have developed skin, cardiovascular Concerned Citizens Inc., an organization and respiratory diseases that never really founded by the community, Magracia joined went away. a series of protests resisting the construction of the power plant. The use of coal to generate energy was proven to have negative health conse- quences according to a 2013 study published by the University of Illinois at Chicago School of Public Health and international group Health Care Without Harm. The study noted the “evidence of coal's impact on human health during every stage of its use for electricity generation—from mining to post-combustion disposal.” “Air pollution from coal plants affects respiratory and cardiovascular systems,

CASE STUDIES - BATAAN, PHILIPPINES 00 causes abnormal neurological development Threats to Livelihoods in children, poor growth of the fetus before birth, and cancer,” it added. Even local fisherfolk were not spared. n 2016, the Bureau of Fisheries and Aquatic Children, the elderly, pregnant women, and Resources found out that fish samples from people with lung conditions like asthma Limay had high levels of chromium, and chronic obstructive pulmonary disease cadmium and mercury. are “especially vulnerable to health effects” of this kind of pollution, the study noted. Long-time fisherfolk Fred Dela Cruz said that fishes in their area were often driven “I’m not a smoker, but I feel like there’s away by “bad water,” which he believed was always a lump in my throat,” said Dellosa, seawater mixed with the power plant’s who also showed this journalist a red patch chemical waste. on her left foot that she said she acquired after the power plant was built. “The area where the coal plant now stands used to be part of our fishing grounds. Now, Dellosa found out a few years ago that her they’re prohibiting us from entering a huge blood had high levels of arsenic. part of the sea because, as the guards tell us, the company has already bought the “It’s getting harder for us to swallow, our area,” said Dela Cruz. mouths are dry, because of what we’ve been inhaling every day,” said Magracia, “But I told them, isn’t the sea supposed to who has diabetes. belong to fisherfolk too, not just private companies?” he said. Access to comprehensive healthcare and appropriate medicines was also a huge Alvin Pura, who used to work in power concern in the community. plants in other provinces, said the ash emitted by the facilities would stick to their “If you’re poor and you’re feeling ill, you go clothes, make their skin itch and eventually to the health center. If you have money, you lead to other ailments. go to a private doctor. We have learned to live with that every day,” said Angeline His daughter developed asthma at a young Bolitres, 35. age. This is why he, too, decided to stand up against SMC’s coal-fired plant. Mothers complained that their children were frequently getting sick, while many pregnant women have died or lost their babies due to complications, according to the residents’ narration. Results of a health complaints survey conducted from January 16 to 20, 2017 in Limay, as shared by the Coal-Free Bataan Movement, showed that 649 cases of various diseases were experienced by residents since the power plants were built in their town. Cough and colds, skin rashes, headaches, asthma and primary complex were the top health complaints reported by the community. CLIMATE ACTIVISTS SUPPORTING THE LIMAY COMMUNITY PHOTO: AC DIMATATAC

CASE STUDIES - BATAAN, PHILIPPINES 00 Legal Battle FISHERFOLK GET READY AS THE LIMAY POWER PLANT EMITS TOXIC FUMES PHOTO: KATHLEEN LEI LIMAY0 In January 2017, the regional office of the Environmental Management Bureau (EMB) In 2015, SMCCPC reached a USD400-million ordered SMCCPC “to stop any activity inside financing agreement for phase I in loans its coal-fired power plant in Limay, Bataan provided by DBS Bank, Mizuho Financial in the wake of an ash spill” the previous Group, Standard Chartered Bank, Siemens month. Bank, Maybank, Intesa Sanpaolo, CTBC Bank, Bank of Commerce, and MUFG Bank. The incident “has reportedly caused several residents to fall ill,” according to EMB. SMC, its parent company, provided USD248 million in equity. The SMCCPC deployed doctors to aid ailing residents in Lamao but touted to the press In June 2017, a loan agreement for phase II the “low emissions levels” of its “clean coal” was provided by a syndicate of local banks, power plant in Bataan. including the Rizal Commercial Banking Corp. Following the ash spill incident, it was business as usual for the power company. Inclusive Development International (IDI) has connected the dots between the World The people of Limay, however, “were forced Bank’s International Finance Corporation to adjust to the power plant, instead of the (IFC) and 76 coal projects around the world, power plant adjusting to the people,” said including the Limay Power Station, “that Pura. have accelerated climate change, trampled on human rights and polluted the “If you complain, they will tell you: There’s environment.” nothing we could do, it’s already been built,” Pura said. “The IFC continues to funnel money to coal globally through financial intermediaries. In Limay residents are asserting the need for recent years, the institution has outsourced an epidemiological study in Lamao, in order tens of billions of dollars of development to gather new evidence of the power plant’s funding to banks and private equity funds health impacts five years after it started in developing countries,” said IDI. running. In 2017, the Philippines Movement for Coal Financing Climate Justice (PMCJ) lodged a complaint against the IFC for financing “at least 19 The Philippines remains largely a coal active and proposed coal-fired power plants consuming country, with coal having the across the Philippines or to companies that highest contribution to the power own or operate them.” generation mix at 58 percent in 2021, according to the Department of Energy. In 2020 the government has issued a moratorium on new coal-fired power plants, but it will still allow projects that have already been approved to be built. The coal plant in Limay received massive funding from both foreign and local financial institutions. The Limay Power Station was envisioned as a USD1,900-million coal-fired power plant to be developed in two phases, composed of two 150 MW units each.

CASE STUDIES - BATAAN, PHILIPPINES 00 The PMCJ had submitted the complaint “on “They need to start converting to renewable behalf of communities and families who are energy and fulfill their commitment to suffering or stand to suffer from localized fighting climate change. They need to listen social and environmental harms” caused by to the people’s voices, not just to their the power plants. personal interests. They need to think about the consequences of their actions, because With an enemy of this scale, why wouldn’t there’s no second Earth. It’s the only one we the residents near the Limay coal plant have,” she added. leave the town and build a life elsewhere? Our hearts are here in Bataan. The one who needs to leave is the coal plant, not the people,” said Magracia. References: https://noharm-uscanada.org/sites/default/files/documents-files/828/Health_Effects_Coal_Use_Energy_Generation.pdf https://noharm-asia.org/sites/default/files/documents-files/4625/March%2010_HEI_Coal%20in%20Bataan%20CFBM.pdf https://www.denr.gov.ph/index.php/news-events/press-releases?start=1055 https://business.inquirer.net/224470/smc-touts-low-emissions-limay-power-plant https://www.inclusivedevelopment.net/wp-content/uploads/2020/01/philippines-coal-report.pdf https://airtable.com/shrAA2T8L2SRtgX5M/tblIce5t9zYKfbCad/viwtsdqh4tENPYtwF?backgroundColor=blue&layout=card https://www.syciplaw.com/news/articles/fa/183 https://www.globaldata.com/store/report/scpc-limay-coal-fired-power-plant-expansion-600-mw-bataan/

FINANCIAL FLOWS

FINANCIAL FLOWS 00 Japanese finance: THE LIFEBLOOD OF ASIAN FOSSIL FUELS LOOPHOLES REMAIN IN JAPANESE MEGABANKS’ CLIMATE FINANCE POLICIES, EXTENDING FOSSIL FUEL USE AND EXACERBATING NEGATIVE IMPACTS ON VULNERABLE COMMUNITIES. THE MEGABANKS SUPPORT “FALSE SOLUTIONS” SUCH AS GAS, HYDROGEN, AMMONIA, AND CARBON CAPTURE AND STORAGE (CCS). Japan continues to invest in fossil fuels and Leaving the Door Open for Fossil Fuels dangerous new energy plans for Asia. Japan, which is among the world’s top five The country is not immune to the growing CO2 emitters, is also one of its biggest fossil global momentum to phase out coal-fired fuel funders. power: In June 2022, the Japanese government announced it was ending The country’s three leading megabanks — financial support for coal-fired power plant MUFG, SMBC Group, and Mizuho FG — expansions in Bangladesh and Indonesia. accounted for almost 10% of the fossil fuel Similarly, Japan’s megabanks — Mitsubishi financing made by the world’s top 60 banks UFJ Financial Group (MUFG), Sumitomo over the 2016–2021 period, according to Mitsui Financial Group (SMBC Group), and Rainforest Action Network’s 2022 Banking the Mizuho Financial Group (Mizuho FG) — on Climate Chaos report. And the three now aim to divest from coal power by 2040 were global leaders in support for coal and achieve net zero emissions across their power from 2019 to 2021. financial portfolios by 2050. Although all three megabanks have However, Japan and its three megabanks pledged to divest from coal projects by support technologies that climate 2040, former 350.org Japan staff Eri advocates call “false solutions”: carbon Watanabe said the banks need to do more capture and storage (CCS); mixed (Watanabe still worked for 350.org at the combustion or dedicated use of ammonia time of interview). and hydrogen; the positioning of natural gas as a transition fuel. Experts note that “Actually, their current portfolio will expire these technologies are not in line with the by 2040,” she explained. “They get their Paris 1.5°C pathways, do little to facilitate a money back by 2040.” The banks’ policies meaningful energy transition, and are much only ban finance for specific coal projects, costlier than renewables. allowing corporate finance for companies involved in coal to continue.

CASE STUDIES - MATARBARI, BANGLADESH 00 In order for their climate policies to align WHILE ALL THREE with limiting global warming to 1.5º C, MEGABANKS HAVE SET Watanabe said the megabanks should REDUCTION TARGETS divest from coal by 2030, or establish FOR THEIR separate targets for their coal portfolios in INVESTMENTS IN OIL developed versus developing countries. AND GAS, THE TARGETS Currently, the megabanks can still support ARE BASED ON CARBON Japan’s own coal fleet through 2040. INTENSITY — THE AMOUNT OF Alongside these loopholes in the three GREENHOUSE GASSES megabanks’ ban on new coal plants or (GHG) EMITTED PER expansions, they also continue to offer KILOWATT HOUR OF financial support for new gas projects. For ELECTRICITY PRODUCED example, SMBC states that “gas will ACROSS THEIR continue to be an important source of PORTFOLIO — RATHER energy” while acknowledging gas projects’ THAN ABSOLUTE environmental, social, and financial risks. EMISSIONS. “The [Intergovernmental Panel on Climate In addition, the megabanks support fossil Change] estimates that the fossil fuel fuel power generation projects equipped infrastructure currently in operation and with CCS or which utilize mixed combustion planned … would alone produce enough with (and eventual conversion to) hydrogen CO2 to cause global temperatures to rise by or ammonia. Although the latter two fuels more than 2°C. In light of climate science, produce zero greenhouse gas emissions at there is no room for new fossil fuels the smokestack, most hydrogen and including gas,” wrote Friends of the Earth ammonia is currently made using fossil (FoE) Japan and other environmental fuels. nonprofits in a November 2022 open letter to Japan’s prime minister. “Society needs to move away from all fossil fuels as quickly as possible, and the truly While all three megabanks have set green hydrogen produced by electrolysis reduction targets for their investments in driven by renewable electricity can play a oil and gas, the targets are based on carbon role. intensity — the amount of greenhouse gasses (GHG) emitted per kilowatt hour of electricity produced across their portfolio — rather than absolute emissions. For example, SMBC Group aims to reduce GHG emissions from its oil and gas loan and investment portfolio by 12~29% by 2030. The bank explained in its 2022 report on its climate change initiatives that carbon intensity is a more suitable metric than absolute emissions because the bank anticipates “an increase in the overall volume of power generation going forward” and that reducing carbon intensity will in fact lead to absolute GHG emission reductions as well. Watanabe disagrees: “The issue with the intensity target is they can still increase their financing for overall fossil fuel power projects, [as long as] they increase renewable energy” financing as well.

CASE STUDIES - MATARBARI, BANGLADESH 00 Blue hydrogen [produced using natural gas The SMC Limay coal-fired power plant in or coal gasification with CCS], though, Bataan, Philippines, which came online in provides no benefit” due to emissions 2017, is one such example. Mizuho and generated through its manufacturing, MUFG were among the banks that provided concluded a 2021 article in the journal an initial $400 million loan. “San Miguel, Energy Science & Engineering. one of the largest conglomerates in the Philippines, is implicated in [a] recent coal Nevertheless, MUFG states in its ash spill as residents of Limay filed environmental policy that “coal-fired power complaints that the ash residue caused generators equipped with CCUS, mixed them to fall ill and damaged their houses combustion, and other technologies … may and crops,” noted a report by Chuck be considered on an individual basis.” SMBC Baclagon, regional finance campaigner for Group has already “built a broad network 350.org Asia. with hydrogen-related businesses,” but the bank’s policy does not differentiate Climate justice advocates like Baclagon also between hydrogen produced by fossil fuels point to many of coal’s failings as a long- and hydrogen produced by renewable term energy solution: As more investors energy. Mizuho FG too names hydrogen and turn to renewables, it could leave countries ammonia as examples of “investment areas with stranded fossil fuel assets, economic aimed at achieving carbon neutrality” volatility, and dependency on imported without specifying how the fuels should be fuels. produced to reduce emissions. Currently, Japan’s hydrogen strategy prioritizes However, hydrogen, ammonia, and CCS — hydrogen derived from fossil fuels. which are intended to reduce emissions from coal plants — were among the only Japan’s megabanks are leaving the door technologies named in a January 2022 wide open for continued fossil fuel use. memorandum of cooperation between Japan and Indonesia. The memorandum Financing fossil fuel Projects, Promoting called them “realistic energy transitions” and encouraged their development and False Solutions deployment. It also recognized the “importance of cooperation on blue, green Japanese megabanks’ support for fossil fuel and other types of hydrogen. projects in Asia has also negatively impacted local communities’ health and livelihoods.

CASE STUDIES - MATARBARI, BANGLADESH 00 A November 2022 open letter from 41 FACADE OF THE SUMITOMO MITSUI BANKING CORPORATION (SMBC). Indonesian civil society groups urged Japan PHOTO: YUMA KONISHI to “immediately stop promoting the false solutions to prolong the lifespan of fossil The threat of pressure from shareholders fuel-based energy.” The letter noted the was enough to get Japanese insurance Japanese megabanks’ existing financial companies involved in coal to adopt support for large coal power plants in stronger climate policies, and comparing Indonesia and called for the plants’ early Japanese financial institutions’ policies with closure. those of their European counterparts is another way to “show the gap” between the A similar situation is unfolding in two, according to Tanabe. Bangladesh, where the Japan International Cooperation Agency (JICA) has developed Of course, comparing policies and working an energy and power master plan for the with shareholders is only part of the story: country. As in Indonesia, the plan calls for There are various impacts of fossil fuel widespread use of hydrogen and ammonia. projects that can only be grasped on the ground. The plan “is based on unrealistic assumptions, such as the introduction of “The construction of coal plants also coal-fired power generation using 50% displaces members of the community, and ammonia combustion around 2030. As of their operations impact nearby agriculture 2022, Japanese companies are still and cause pollution problems,” Tanabe said. conducting demonstration testing to “It’s hard to understand these problems achieve 20% combustion,” FoE Japan stated without visiting in person.” in their above-mentioned open letter. It warned that mixed combustion “increases With its technical expertise and extensive dependence on fossil fuels.” network in Asia, Japan is in a position to lead the region’s energy transition. Rather With no ban against financing hydrogen, than gamble on unproven technologies in ammonia, and CCS projects that don’t combination with fossil fuel infrastructure, meaningfully reduce emissions, the Japan should help the region implement megabanks will likely continue to enable true climate solutions by phasing out fossil these “false solutions.” fuels at home and overseas and further investing in renewable energy. Pressure from Shareholders Both in Japan and abroad, civil society groups are pressuring Japan’s financial institutions to implement stronger climate policies. Shareholder proposals have been an effective tactic so far, according to Yuki Tanabe, program coordinator at the Japan Center for a Sustainable Environment and Society (JACSES). Japan pulled out of the Matarbari coal project in Bangladesh mainly because “Sumitomo Corporation said it wasn’t going to be involved with phase two, due to a shareholder proposal from the Australian NGO Market Forces,” Tanabe said. “The Japanese government looked for other corporations, but no one would do it, so in the end the project stopped.”

CASE STUDIES - MATARBARI, BANGLADESH 00 BUILDING FACADE OF THE MUFG JAPANESE MEGABANK. PHOTO: YUMA KONISHI BUILDING FACADE OF MIZUHO MEGABANK. https://ppi.worldbank.org/en/snapshots/project/lim PHOTO: YUMA KONISHI ay-coal-fired-power-plant-8619 References: https://jp.reuters.com/article/philippines-san- miguel-loans-idAFL3N0ZO3C120150708 https://www.smfg.co.jp/english/sustainability/mater iality/environment/climate/pdf/tcfd_report_e_2022. https://www.meti.go.jp/press/2021/01/20220113003/2 pdf 0220113003-1.pdf https://www.mufg.jp/dam/pressrelease/2022/pdf/ne https://foejapan.org/en/issue/20221101/10064/ ws-20220401-001_en.pdf https://foejapan.org/en/issue/20221101/9904/ https://carbonaccountingfinancials.com/files/institu tions_downloads/mizuho-financial-group- https://www.jica.go.jp/project/english/bangladesh/0 disclosure.pdf?342ae666f5 16/outline/index.html https://fossilfreejapan.org/media/media- https://world.350.org/ja/press- releases/japanese-government-announced-to-halt- release/20220518smbc-en/ its-supports-for-matarbari2-and-indramayu/ https://www.mightyearth.org/2022/03/02/victory- https://www.bankingonclimatechaos.org//wp- sumitomo-corporation-withdraws-from-matarbari- content/themes/bocc-2021/inc/bcc-data- 2-coal-plant-project/ 2022/BOCC_2022_vSPREAD.pdf https://world.350.org/philippines/we-fight-because- https://world.350.org/ja/files/2022/02/Financing- we-remember/ GCEL-2021_Media.pdf https://world.350.org/philippines/standing-up- https://onlinelibrary.wiley.com/doi/full/10.1002/ese3. against-pollution-and-corporate-impunity/ 956 https://www.renewable- ei.org/pdfdownload/activities/REI_JapanHydrogenS trategy_EN_202209.pdf https://world.350.org/philippines/bataan/

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