By Marielle C. Lucenio
CATHOLIC bishops in the country said they will withdraw their resources from banks that continue to finance coal projects by 2025 and will reject donations from “destructive” industries.
“We must not allow the financial resources of our Catholic institutions to be invested in favor of coal-fired power plants, mining companies, and other destructive extractive projects,” the Catholic bishops wrote in their “Pastoral Letter on Ecology” released on Jan. 29.
These decisions, which the Catholic Bishops’ Conference of the Philippines (CBCP) came up after a two-day online plenary assembly, were strengthened by Pope Francis’ leadership and call for more investments in renewable energy.
The bishops urged priests to discuss with and demand their respective banks where they deposit their financial resources to come up with policies and plans to phase out their exposure to coal, fossil gas, and destructive energy.
“Without clear commitments and policies from these banks to divest from fossil fuels, we commit to withdraw all our resources that are with them not later than 2025, and hold them accountable to their fiduciary duties and moral obligations as climate actors,” the bishops wrote.
They also asserted a “non-acceptance policy” of whatever kind from owners or operators and anyone from the extractive industries especially those from coal, fossil gas, mining, quarrying, and logging regardless of the scale of operations.
“Our people need to be very critical, especially our parish priests. While we have several needs in our pastoral work, let us not compromise the welfare of our environment,” CBCP President Bishop Pablo Virgilio S. David said in press conference on Saturday.
Bishop Gerardo A. Alminaza of Diocese of San Carlos and Convenor of Withdraw from Coal urged companies to turn their backs against “dirty energy.”
“We challenge them to take the CBCP’s Pastoral Letter on Ecology as an invitation to exhibit genuine leadership in advancing climate action by ending their fossil fuel funding and paving the path to a future powered by clean energy from renewables,” he said in a separate statement.
The Energy department declared in October 2020 a moratorium on new coal power plant projects for a more sustainable power mix.
Several banks committed not to finance new coal plant projects.
Bank of the Philippine Islands (BPI) is aiming to reduce coal financing in its portfolio by half in 2026, exit coal financing as early as 2033 and to reach zero loan to the sector by 2037.
In 2020, Rizal Commercial Banking Corp. (RCBC) said its entire banking system is moving towards making its loan available only for non-coal projects.
BDO Capital & Investment Corp. President Eduardo V. Francisco, meanwhile, said during the Energy investment Forum on Dec. 3, 2021 that the company would discuss with Asian Development Bank to explore lending opportunities for coal-fired projects to avoid stranded assets for coal investors and assist the country in the energy transition.
