Three local banks of Singapore are under strong enquiry for providing grants to power plants that are dependent on coal in the country.

Recently, a range of banks including DBS, HSBC and Citigroup issued US$2.75bn bond and loan for the Paiton coal-fired power station complex in East Java, Indonesia.

The inquiry is conducted over speculations that the projects will aggravate the adverse impacts on climate change.

The banks are of the opinion that coal financing is in need of investment. However, a quick swap with renewable energy is not a viable option at the moment, even though the banks are encouraging their customers to go green.

DBS is currently the first local bank in the country that has released a climate policy. But many haven’t favored the venture the bank has undertaken.