Philippine banks recorded zero new financing for coal and gas projects in 2024, marking the first such occurrence since the 2015 Paris Agreement, according to the 2025 Fossil Fuel Divestment Scorecard by the Center for Energy, Ecology, and Development (CEED). This pause in fossil fuel investments signals growing caution among banks, driven by financial, legal, and environmental risks, while renewable energy financing surged to USD 1.28 billion last year.
“This year began with a stark warning of how gravely insufficient climate action has been in the last decade – especially on action necessary to end global dependence on fossil fuels: 2024 is the first full calendar year recorded of temperature rise beyond 1.5°C,” said Bishop Gerry Alminaza, lead Convenor of Withdraw from Coal: End Fossil Fuels (WFC:EFF). “But this year’s Fossil Fuel Divestment Scorecard offers a glimpse of hope, with no new financing for coal or gas recorded among domestic commercial banks in 2024.”
The report highlights a doubling of renewable energy financing since the 2020 coal moratorium, with renewables now constituting 67% of total energy financing in the Philippines. However, CEED warns that this progress is fragile. The passage of the Natural Gas Industry Development Act in January 2025 and loopholes in bank divestment policies could reverse gains. Alarmingly, a new USD 3.3 billion deal finalized in early 2025 by BDO, BPI, and Metrobank to fund gas facilities in the Verde Island Passage has raised red flags.
“I would like to hope that this state of affairs is a mark that our domestic banks are now all the more embracing their crucial role in pushing back against worse climate chaos,” Alminaza said. “Unfortunately, we recently saw news break out of three major commercial banks – BPI, BDO, and Metrobank – starting 2025 wrong by financing the joint venture of San Miguel Corporation, Aboitiz Power, and Meralco’s MGen for three gas facilities along the biodiverse Verde Island Passage.”
Gerry Arances, CEED Executive Director, emphasized the need for vigilance: “The path forward is clear: our financial institutions must stop all new fossil fuel financing and accelerate their commitment to renewable energy for a clean, just, and people-centered development future for all Filipinos.”
What are your thoughts on Philippine banks halting fossil fuel financing in 2024, only to back a major gas deal in 2025? Join the conversation.
Follow Power Philippines on Facebook and LinkedIn for more updates.
There are no comments
Add yours