May 22, 2025
| Online Desk
A new report by the Coastal Livelihood and Environmental Action Network (CLEAN) criticises Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for significantly financing fossil fuel-based energy projects in Bangladesh, accusing the megabank of worsening climate risks and creating long-term financial burdens.
Titled “SMBC in Bangladesh: Financing Dirty Energy | Scrapping Our Future”, the report reveals SMBC advised the Matarbari Coal Power Plant and financed three major fossil fuel projects – Summit LNG Terminal, Gazipur II HFO Power Plant, and Meghnaghat LNG Power Plant – totalling $238.71 million.
These projects have collectively added 2,218 MW of fossil fuel-based power capacity and a 500 mmcfd LNG terminal to Bangladesh’s energy sector. Despite operating in over 39 countries, SMBC has no physical presence in Bangladesh. Yet, the report accuses the bank of leaving a significant carbon footprint while making no investments in the country’s renewable energy sector.
Hasan Mehedi, member secretary of the Bangladesh Working Group on Ecology and Development (BWGED), stated, “Shockingly, SMBC has not invested a single penny in renewable energy in Bangladesh. Their support for fossil fuel projects has resulted in stranded assets and billions in public expenditure through capacity payments, with little return in terms of sustainable or reliable power.”
According to the report, two SMBC-backed projects — the Summit LNG Terminal and the Summit Gazipur II Power Plant — have already cost Bangladesh an estimated Tk 6,355 crore ($654 million) in capacity charges over six years. Under the current 15-year contracts, total costs are projected to reach Tk 20,129 crore ($1.86 billion).
CLEAN’s report highlights SMBC’s lack of transparency and its failure to uphold global climate commitments, naming it among the 'Dirty Dozen' financiers of fossil fuels. The organization calls for urgent reforms, including an immediate halt to fossil fuel financing in Bangladesh, rejoining the Net-Zero Banking Alliance, compensating affected communities, and redirecting investments toward renewable energy.
News Link: Japan’s SMBC accused of worsening climate risks in Bangladesh