A state-owned Chinese company that has slashed its green credentials while listing on the London Stock Exchange has quietly acquired a development in Indonesia that scientists warn is threatening the world’s rare large monkey.
SDIC Power has signed plans to invest $ 277 million in Indonesia’s Hydang power plant Batang Toru less than two months after completing a 2020 listing supported by major Western banks and heavily supported by the LSE.
But environmentalists have argued that the dam is not needed and asked if the project was pushed aside for political reasons to support China’s belt and road initiative. They also said the development endangered the extinction of people who are in serious danger of extinction Tefenoli Orange Outton.
SDIC Power’s acquisition of 70% of the project’s shares, which has not been reported so far, with the exception of company disclosures, has also raised concerns about companies exaggerating their environmental authority in a growing market for responsible investments.
Activists have called on Beijing to withdraw from development in Sumatra, in western Indonesia, as it prepares to host this year’s UN Biodiversity Conference.
“We had high hopes that China would become a responsible funder on the global stage,” said Amanda Horowitz, director of the Mighty Earth campaign group. Now “a Chinese state entity is involved in this project that could lead to the extinction of a species. It just hurts my heart.”
SDIC Power, part of the state-owned Development and Investment Corporation, was registered in the UK in October 2020 through the London-Shanghai Stock Connect, a program launched last year to boost financial center ties. HSBC, Goldman Sachs and UBS would like its London debut books. The then-LSE interim CEO, Danzil Jenkins, welcomed the listing as a “milestone for [SDIC Power’s] Business”.
The group said about 70 percent of the proceeds will be used to invest in renewable energy projects overseas.
The Batang Toru Dam is considered part of the China Dam Belt and Road InitiativeOne of Xi Jinping’s flagship projects in foreign policy, designed to build infrastructure and gain political influence around the world.
Opponents, however, are skeptical about the benefits of development. A 2020 report commissioned by Mighty Earth and in collaboration with a Stanford University lecturer found that there was no energy deficit in North Sumatra, the area provided by the Hydro Power Dam, where 80 new plants were planned to be built or developed over the next decade.
The acquisition could be “geopolitical,” said one environmentalist. “We doubt SDIC is involved because the Chinese country wants it.”
Critics said the project has been shrouded in secrecy since its launch in 2015 by North Sumatera Hydro Energy, a Chinese-backed company that acquired the majority of SDIC Power last October. Campaigns began to target development when up to 800 rare Tepnoli orange-ottani were discovered in the area in 2017.
Tensions escalated in 2019 following the “Most suspicious” death. Of an environmental lawyer in Sumatra. Golfrid Sirger, who opposed the dam, died three days after being found beaten on the side of the road, environmentalists said.
The lack of awareness of SDIC Power’s part in the project highlighted “how complicated [responsible investing] He “, said Serge Witch, a professor of primate biology at the University of Liverpool John Mavers who opposed the dam. Although investors often” hope they do the right thing “, they may still” invest in dubious projects “.
SDIC Power and HSBC did not respond to a request for comment. The LSE, Goldman Sachs and UBS declined to comment.
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