Friday April 23, 2020 The No Coal Japan coalition welcomes the remarks by Japan Bank for International Cooperation (JBIC) Governor Tadashi Maeda that it “will no longer accept loan applications for coal-fired power generation projects.” Governor Maeda made these comments during an interview published by Japanese industry magazine, Diamond Online, on April 22.
The statement from JBIC’s Governor is a critical turning point in the global transition to clean energy. JBIC has long been one of the cornerstones of coal power development in Asia, so its exit sends the unmistakable signal that the era of coal power is over.
As the major driver of air pollution and the climate crisis, new coal power has no place in the modern world.
The statement from Governor Maeda comes only days after Mizuho Financial Group, the world’s largest private lender to coal power development, also announced a coal power exit policy.
Japan is the second largest provider of public finance for coal power globally and the only G7 country still building new coal plants at home and overseas. JBIC accounts for the majority of Japan’s public finance for coal power beyond its borders, having provided over US$14 billion to coal power projects since 2003, including the financing of eight power plants since the Paris Agreement was signed.
The No Coal Japan Coalition is now calling on the Japanese government to announce a clear policy to end all support for new coal power and to reject finance for any new coal power projects currently under consideration.
Currently, JBIC is considering financing the controversial Vung Ang 2 coal project in Vietnam, while the Japan International Cooperation Agency (JICA) is considering financing the Indramayu coal power plant in Indonesia and the Matarbari 2 coal power project in Bangladesh, which have faced strong public resistance.
As a technology leader and the world’s third largest economy, Japan has a critical role to play in the global transition to renewable energy. JBIC’s announcement is an important step which we hope signals greater climate ambition from Japan, both at home and abroad.