Standard Chartered Bank published a position statement on power generation on its website on February 3, 2019, stating that it is a non-legally binding and voluntary declaration and will be subject to change from March 2019 onwards. The bank is committed to promoting sustainable practices in the energy sector to support economic growth and prosperity.
For fossil fuels (coal and natural gas), the bank will not provide loans for new coal-fired power plant projects, including the expansion of existing coal-fired power plants. The bank expects clients to monitor and publicly disclose greenhouse gas emissions data using internationally recognized methodologies and, where possible, set clear targets for greenhouse gas reduction. Regarding nuclear energy, the bank will only provide financial services to clients involved in peaceful nuclear activities and who demonstrate compliance with international nuclear safety standards and national regulations.
For renewable energy, particularly hydropower projects, the bank expects clients to comply with the recommendations of the World Commission on Dams (WCD) and the World Bank Group (IFC), which include key principles regarding public acceptance, information disclosure, comprehensive options assessment, and sharing rivers for peace, especially for rivers flowing through multiple states or countries.
Previously, there were campaigns against Thai banks regarding loans for cross-border projects such as the Xayaburi Dam and the Xe Pian-Xe Namnoy Dam, the latter of which later collapsed. Radio Free Asia (RFA) reported that on January 18, 2018, Lao PDR officials stated that the release of water from the Xayaburi Dam for trial power generation did not cause abnormal Mekong River levels. However, villagers downstream of the dam reported that the unannounced water release caused abnormal fluctuations in water levels, affecting their livelihoods.
Thai media also reported that in mid-January, the Mekong River level in Nong Khai rose abnormally to 5.70 meters from its previous 3 meters, affecting fish cage farmers and causing fish deaths. However, officials from Thailand's Department of Water Resources stated that a water level increase of 1-3 meters is still within the normal range. Currently, the Xayaburi Dam project is 100% complete and is in the process of impounding water in preparation for trial commercial power generation in late 2019, to be sold to Thailand. According to official Lao reports, at least 15 villages have been affected by the dam.
Full details are in the attached file.
