Banking on Coal in South and Southeast Asia: The Network Behind a Dirty Industry
While coal use is declining across most high-income countries, South and Southeast Asia remain major hotspots for new projects. Although China still leads globally, nearly all remaining expansion is concentrated in seven key countries — India, Indonesia, Pakistan, Bangladesh, Vietnam, Laos, and the Philippines — where 216 GW of new coal capacity were still planned as of 2024. These projects are largely driven and financed by Chinese, Indian, and Indonesian actors, locking in emissions that are incompatible with global climate goals.
Key findings:
- 92 developers account for ~99% of planned expansion, dominated by Chinese and Indian state-owned groups.
- The top 100 banks provided US$49.5 bn to coal developers between 2021–2024; 42% came from just 10 banks.
- 95% of financing flows through corporate finance, making project-only restrictions largely ineffective.
- Only 51% of banks have a coal policy, and none have a robust, Paris-aligned framework.
To curb coal expansion, banks must adopt comprehensive policies that fully exclude financing for new coal projects and the companies developing them — including loans, credit lines, and bond/equity underwriting. Policies must apply group-wide, remove loopholes (e.g., existing clients, captive plants, subsidiaries), and require coal phase-out plans aligned with 2030/2040 deadlines.