Bank’s RE lending overtakes coal portfolio amid shift to sustainability

Rizal Commercial Banking Corp. (RCBC) has reported that its renewable energy (RE) loan portfolio has overtaken its coal loan exposure for the first time, marking a key milestone in the bank’s ongoing pivot toward sustainable financing.

As of end-2024, RCBC’s RE loans stood at %u20B152.7 billion, an 80 percent increase from the %u20B128 billion recorded in 2023. The shift reflects growing demand for clean energy financing and the bank’s commitment to gradually exit fossil fuel lending.

RCBC chief sustainability officer Armi Lamberte said the shift away from coal aligns with the bank’s 2020 pledge to stop funding new coal-fired power projects and fully phase out coal-related financing by 2031.

“For the first time, our renewable energy portfolio has surpassed the coal portfolio,” Lamberte said. “The steady decline in coal exposure reflects our continued shift toward sustainable investments.”

As of March 2025, renewable energy made up 44 percent of RCBC’s sustainable finance portfolio. In total, the bank has financed 22 renewable energy projects across wind, solar, geothermal, and hydroelectric technologies—representing over 2,000 megawatts in combined capacity.

One recent transaction includes a %u20B1498-million loan extended in June to San Jose Green Energy Corp. (SJGEC) for its 19.6-megawatt solar power project in Nueva Ecija. SJGEC is part of Rizal Green Energy Corp., a joint venture between PetroGreen Energy Corp. of the Yuchengco Group and Japan’s Taisei Corp.

The government aims to grow the share of renewable energy in the country’s power generation mix from 22 percent to 35 percent within five years. RCBC’s increasing exposure to green energy financing supports this goal, and industry observers view the bank’s move as indicative of broader trends across the financial sector.