IFC financial intermediary RCBC finances dozens of new coal-fired power plants across the Philippines.
Communities fight IFC-backed coal expansion in the Philippines
Communities harmed by IFC coal Philippines projects are still waiting for remedy, nearly a decade after raising concerns about the impacts.
On this webpage, you can find all the details about the case including history and details of the complaint, timeline, partners, case documentation and latest news, and related research and policy documentation.
Complaint to the IFC’s ombudsman
Between 2011 and 2017, Rizal Commercial Banking Corporation (RCBC) – the Philippines eighth largest commercial bank and a financial intermediary client of the IFC – financed dozens of new coal fired power plants across the Philippines.
In addition to exacerbating the global climate crisis, this coal boom caused serious, immediate harm to local communities. People were forced from their homes and faced violence or intimidation when speaking out against the projects. The coal plants have polluted air and water sources, causing respiratory diseases and other health problems. Fisherfolk and farmers lost their livelihoods due to environmental damages.
Gloria Capitan was an active member of the Coal-Free Bataan Movement, protesting the three coal projects in Bataan province financed by RCBC and IFC. Her family experienced firsthand the impacts of coal projects, with her granddaughter facing severe health problems from exposure to coal dust. In July 2016, Gloria was killed by two gunmen. She had already faced threats and intimidation before this, and there is little doubt she was killed because of her activism.
The coal financing was in clear violation of the IFC’s social and environmental standards (namely Performance Standards 1, 3, 4, 5, 6 and 7), yet it occurred while IFC held a 13% equity stake in RCBC bank and a seat on its board of directors.
In 2017, the Philippine Movement for Climate Justice, Recourse and Inclusive Development International filed a historic complaint to the IFC’s Compliance Advisor Ombudsman (CAO) together with affected communities. After extensive investigation of the case, the CAO found the IFC to be at fault. It called on the institution to provide remedy and reform its financial intermediary lending practices to prevent future harm. Yet, even after so many years, communities are still waiting for the remedy they are due.
This 2016 report first exposed the role of the IFC – the World Bank Group’s private sector arm – in backing coal expansion across the Philippines through its financial intermediaries. Read it to learn more about the harms wrought on local communities and the climate.
Partners
Philippine Movement for Climate Justice (PMCJ)
PMCJ is a coalition of over 150 grassroots networks, alliances, and community-based organisations in the Philippines. It demands accountability from developed nations for the climate crisis, campaigns against coal and fossil fuel expansion, and advocates for a just transition to renewable energy.
PMCJ organises and supports the communities at each of the affected sites to engage investigations by the CAO and the IFC to determine the harms associated with the coal plants, and to participate in processes aimed at securing remedy. With Recourse’s support, PMCJ representatives have regularly travelled to World Bank Group meetings to bring the case to the attention of decision-makers.
Inclusive Development International
Inclusive Development International is a human rights advocacy organisation that works to advance social, economic, and environmental justice by supporting communities around the world to defend their rights and resources in the face of harmful corporate activities and internationally financed development projects, just like this one.
Additional complaint against Standard Chartered bank
In 2024, PMCJ, Recourse, IDI and Dutch NGO BankTrack, submitted a complaint to a British government mediation body regarding Standard Chartered bank’s financing of four of the same coal power plants.
The complaint accused the British commercial bank of breaching local communities’ rights by financing the operations, and called for due compensation and stronger safeguarding policies.
The UK National Contact Point for Responsible Business Conduct (NCP) has since accepted this complaint and offered mediation to parties.
This news article covers the details of the complaint made against Standard Chartered. Read it to understand more about the role of a National Contact Point for Responsible Business Conduct (NCP) in holding commercial banks and businesses to higher standards.
Fights like this one from the Philippines are both about securing justice for communities and achieving wider policy shifts in international financial institutions.
Since this fight began, the IFC has committed to end financing for financial intermediaries that do not have a plan to phase out coal, inscribed in its ‘Green Equity Approach’. Recourse works to hold institutions like the IFC to such commitments, and to close all loopholes leaking public money to fossil fuels.
Browse below for documentation related to the case and the IFC’s coal policies.
Case documentation
