Manila, 12 July 2016 – Norges Bank Investment Management has denied AboitizPower, along with other coal companies, access to its Government Pension Fund Global, the world’s largest sovereign fund worth US$ 850 billion.
Reacting to the news, Francis de la Cruz, Associate for Energy Policy at the Institute of Climate and Sustainable Cities (iCSC) commented:
“We laud the decision of the Norges Bank Investment Management to change the behavior of actors in the power sector by not putting money into firms where its ethics forbid.
“Coal is simply bad business. For some time now, the largest financial institutions have dumped coal from their investment portfolios, then moved their investments to renewable energy, causing the bankruptcy of the world’s largest coal companies. Energy companies in the Philippines and the new government ought to see this very clear sign from the financial community.
“During the review of the energy plan approved by the previous administration, the Duterte government must usher in real change, break away from coal reliance imposed by the previous government and bring in massive economic benefits from renewable energy. Any sort of uncertainty in our energy strategy will send confusing signals to the financial community and may cause the Philippines to miss out on the hundreds of billions of dollars currently being invested in renewable energy across Asia.
“The new government must not lock the Philippines in coal, which is not just a losing economic proposition but comes back to punish us in the form of disasters fueled by climate change.”
Useful Energy Facts
Peabody Energy, the world’s largest private-sector coal producer, filed for bankruptcy in April 2016. Arch Coal, which owns the second-largest U.S. coal reserves behind Peabody, filed for bankruptcy in January 2016.
Clean energy investment surged in 2015 driving the world total to its highest ever figure of $328.9 billion, up 4% from 2014’s $315.9 billion total investments. (Source: Bloomberg New Energy Finance)
The Philippines is currently ranked 22nd in the May 2016 edition of Renewable Energy Country Attractiveness Index by Ernst and Young, beating South Korea and a host European countries in the ranking based on a number of macro, energy market and technology-specific indicators.
For More Information Contact:
- Francis de la Cruz, Associate for Energy Policy , 0917 854 2103
- AC Dimatatac, Communications Coordinator, 0998 546 9788