Commenting on Singapore banks’ indirect exposure to captive coal in financing policies, SMU Professor of Finance Liang Hao said, “This is no longer a niche issue, and goes to the heart of transition-finance credibility. Financing ‘green-enabling’ materials is not automatically aligned with climate goals if the production pathway remains heavily coal-powered.” He stressed that it does not mean that banks should stop financing all industrial activities that are reliant on coal, but they ought to consider adopting clearer policies on responsible financing that address captive coal exposure.
