Newly elected Japanese Prime Minister Shigeru Ishiba has a critical opportunity to change his predecessors’ misguided energy and climate policies and take urgent action to safeguard our climate and achieve lasting energy security in the region.
During his campaign to win the leadership of the Liberal Democratic Party, Prime Minister Ishiba emphasized the importance of maximizing the full potential of renewable energy and energy conservation. He expressed concern about the extreme heat in the past few years caused by climate change and the urgency to address this global crisis, while also recognizing the need to accelerate Japan’s energy self-sufficiency and reduce the country’s excessive spending on fossil fuel imports.
The Japanese government, banks, and corporations are top financiers of fossil fuels globally, and they are expanding and prolonging their use at a time when the international community is moving to phase them out. Urgent action is required to stop Japan’s promotion of fossil fuels, which are exacerbating climate change and extreme weather events and causing detrimental impacts on communities, public health, and ecosystems. Japan must put people and planet first, and end its support for fossil fuels.
Here are 6 actions Prime Minister Ishiba must take to put Japan on track to support the Asian region and the world to address the climate and energy crises.
Fulfill the G7 promise to end international fossil finance
Japan is consistently ranked as one of the largest international public financiers of fossil fuel projects in the world, providing an average of 6.9 billion USD annually between 2020 and 2022. As a part of the G7, Japan committed to end international public support for fossil fuel projects in 2022. However, it has approved at least $4.7 billion for 14 fossil fuel projects since then. Moreover, Japan’s interpretation of the G7 commitment allows fossil financing to continue beyond the limited cases in line with the Paris Agreement and the 1.5 degree target. Japan should commit to ending overseas fossil fuel support without exception, and join its G7 peers by signing onto the Clean Energy Transition Partnership already backed by 41 countries and institutions.
Stop financing gas and LNG expansion
Japan’s domestic gas demand dropped by 25% in the last decade and is projected to continue declining. Despite this, Japan is buying more LNG than it needs to maintain market dominance and resell it to other Asian countries. The science is clear that gas power must be phased out by 2035 in advanced economies and by 2045 in the world to avert a climate catastrophe. Expanding gas supplies and infrastructure now will only lead to stranded assets. A string of recent gas project cancellations in Bangladesh and the Philippines also point to the economic and energy security risks of relying on gas. Japanese-financed LNG projects, such as Mozambique LNG, are also associated with egregious human rights abuses.
Accelerate a rapid, just transition to renewables
Japan’s ill-conceived “Green Transformation (GX)” strategy relies on fossil fuel-based technologies including LNG, co-firing of ammonia and biomass with coal, hydrogen, and carbon capture and storage (CCS). These technologies prolong the use of fossil fuels at a time when renewable energy solutions are reliable, available, and cheaper. The Japan-led greenwashing initiative, Asia Zero Emission Community (AZEC), promotes these technologies under the guise of helping the region decarbonize. In reality, Asia’s energy transition requires a swift transition to renewables, not various pathways that use fossil fuels. Studies show that 99% of Southeast Asia’s renewable potential, including solar and wind, remains untapped.
Support people-centered energy plans that prioritize access, security, and climate
The Japan International Cooperation Agency (JICA) has created energy plans for countries like Bangladesh and Indonesia that would prolong reliance on fossil fuels. These plans overestimate power sector demand and have been drafted without consulting those most impacted by climate change and infrastructure development. The JICA-financed Matarbari coal power plant in Bangladesh has harmed communities and destroyed livelihoods. The price of electricity from the project is more expensive than solar energy. Similarly, JICA prioritizes Japanese utility and power company interests, having commissioned them to draft Indonesia’s energy plan. Japan must stop prioritizing corporate profits and shift its efforts to support just, resilient, and sustainable energy plans based on the needs of local communities.
Agree to the Organisation for Economic Co-operation and Development (OECD) proposal to ban support for fossil fuels
Japan’s fossil fuel build-out has left a legacy of harm around the world. Frontline communities are suffering from serious impacts to their health, livelihoods and ecosystems. In particular, Japan’s export credit agencies, Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI), support high-risk projects, including the Philippines’ first LNG import terminal, Freeport and Cameron LNG terminals in the US Gulf Coast, and the Barossa gas field in Australia. We urge Japan to support the proposal backed by the European Union, Canada, and the UK to end support for harmful fossil fuel projects by export credit agencies like JBIC and NEXI at next month’s negotiations at the Organisation for Economic Co-operation and Development (OECD).
Scale up climate finance and cancel odious debt
Japan’s support for fossil fuels is three times larger than its support for clean energy. Most of Japan’s energy financing has been in the form of loans rather than grants, which burden climate-vulnerable, economically poor countries. Considering its responsibility, as one of the richest, historically biggest emitters, Japan has an obligation to pay for its share of the climate crisis. Japan can make a drastic difference by canceling debt incurred by countries least responsible for the crisis, shifting its fossil finance towards renewable energy, and providing grants for community-centered renewable energy.