Civil society groups and peoples’ movements from around the world have banded together to launch a new coalition to pressure Japan to stop financing fossil fuels and accelerate a just transition to renewable energy. Building on our successes in pushing the Japanese government to stop financing overseas coal projects, we have expanded the mandate of the No Coal Japan coalition to pressure Japanese institutions to stop financing all overseas fossil fuel projects. We encourage you to visit the new Fossil Free Japan coalition website and add your voice to our campaign.
From 2018-2020, the Japanese government provided $10.9 billion on average each year for overseas gas, coal and oil projects, making it the second largest provider of public finance for fossil fuels worldwide after Canada. Of this support $4.8 billion went to fossil fuel projects in Russia just in 2019 and in November 2021 JBIC approved over a billion in financing for the Arctic 2 LNG export terminal in Russia. This is particularly concerning given the current context of Putin’s war against Ukraine and adds another reason to prioritize ending Japanese public finance for fossil fuel projects.
Driving gas expansion
Japan is playing a leading role in expanding gas consumption and infrastructure projects across Asia, particularly for LNG projects. Research shows that such gas infrastructure expansion is not consistent with the goals of the Paris Agreement, and that clean energy alternatives are available and better suited to deliver on energy access and sustainable development needs and are either already cheaper or are expected to be so within a few years.
In April 2021, Japan made a $10 billion commitment to expand LNG markets in Asia. A few months later, Japan offered another $10 billion to ASEAN energy ministers to finance LNG and renewables projects. This August, Japan is hosting a Japan Energy Summit supported by the Ministry of Economy, Trade and Industry with a focus on LNG and gas.
Violating indigenous rights
Japan is supporting projects that are violating the rights of indigenous communities. In 2021, JBIC approved a $346 million loan for the dirty Barossa gas development project in Australia. The Barossa gas project threatens to be the one of the most polluting gas projects in Australia. It is an offshore gas development project in Northern Territory, Australia. Plans to capture emissions with CCS are questionable. Even if successful, this would reduce only about 30% of the project’s emissions. Despite JBIC’s requirement for obtaining the free, prior and informed consent of indigenous communities, it appears that the Tiwi people have not been meaningfully consulted at all.
In October 2021, JBIC approved a $850 million loan for the LNG Canada project in Kitimat, British Columbia. The Wet’suwet’en are fighting to stop the construction of the associated Coastal Gas Link pipeline which will transport fracked gas to the LNG Canada terminal. JBIC’s decision to finance the project also violates its guidelines regarding the free, prior and informed consent of indigenous peoples.
Promoting technologies to extend the lifetime of dirty coal plants
Despite Japan’s G7 commitment to phase out overseas coal finance by the end of 2021, Japan is promoting the co-firing of ammonia at existing coal plants which will extend the lifetime of power plants that should be shut down. Further, this technology is not economically viable. Bloomberg New Energy Finance estimates that co-firing coal with 20% ammonia in Japan would add 86% to the LCOEs of coal-fired power today and 59% by 2040.
JERA, Japan’s largest power company, is planning to spend $600 million to develop ammonia technologies with 70% of the money coming from the government’s climate innovation fund. Ministry of Economy, Technology and Industry Minister Koichi Haguida recently signed memorandums to cooperate on ammonia technology with Indonesia, build supply chains for hydrogen and ammonia with Singapore, assist Thailand in mapping its path toward decarbonization and increase production of ammonia with Russia.
Growing movement away from fossils
There is growing consensus that governments must stop financing fossils. 39 governments and institutions including the United States and Germany have committed to ending support for overseas fossil fuel projects by the end of 2022.
Top scientists and global agencies also recommend phasing out fossil fuel projects. The influential International Energy Agency, for instance, in its landmark Net Zero by 2050 scenario, has called for an end to new coal plants and mines, oil and gas fields and LNG export projects.
But Japan is headed in the wrong direction. Japan’s support for false solutions is wasting valuable time and will worsen the climate crisis. Please join our Fossil Free Japan coalition and help speed the end of fossil fuels.