Market Forces filed three identical complaints against SMBC, MUFG and Mizuho with regard to their financing of coal power plants in Vietnam. The complaints allege that SMBC, MUFG and Mizuho are in breach of OECD guidelines because they failed to provide environmental and social impact assessments and consequently failed to urge project sponsors to assess and prevent or minimize environmental damage. They claim that the project’s emissions intensity (estimated at 860-880g CO2/kWh) is of an unacceptably high level by international standards, and would generate twice as much CO2 per unit of power generated as the average electricity generating plant in Vietnam. In addition they allege that banks were made aware about the environmental impacts of the project, but there is no evidence that they took any steps to influence their client to disclose additional environmental information or to implement additional mitigation measures that would reduce the project’s emissions. Further, they failed to adequately consult communities that were affected by the coal-fired power stations.
At Issue: Complaint against funding of coal mines in Vietnam by Japanese Banks