The Problem
Our planet is in crisis. Our communities and ecosystems are suffering from record-breaking floods, wildfires, heatwaves and drought. Fossil fuels are the primary driver of this crisis.
At the COP26 climate summit, 39 governments and institutions pledged to end new direct public support for international fossil fuel projects by the end of 2022. Japan and other G7 countries at the 2022 Elmau Summit committed to “end new direct public support for the international unabated fossil fuel energy sector by the end of 2022, except in limited circumstances clearly defined by each country consistent with a 1.5°C warming limit and the goals of the Paris Agreement.” However, despite this agreement, Japan continues to finance new LNG and gas infrastructure.
Top scientists and global agencies, including the International Energy Agency, have called for a global phase out of new fossil fuel projects. Now, more than ever before, we need governments to roll out renewable energy to tackle the climate crisis.
But Japan is headed in the wrong direction.
Despite Japan’s domestic gas demand decreasing and communities across Asia calling for more renewable energy, Japan is doubling down and financing the expansion of fossil fuels.
Japan’s role in expanding upstream LNG has left a legacy of harm around the world. It also undermines Asia’s energy security by keeping the region locked in expensive, volatile, and imported fossil fuels. Like other rich nations, Japan has a historic responsibility to reduce global emissions and lead the world’s transition to a renewable energy future.
Gas is dirty, expensive and unnecessary
Japan is actively working to expand gas consumption across Asia. Japan pledged $10 billion to expand gas markets in Asia in April 2021.
From financing new gas fields in the US to building gas power plants in Bangladesh, Japanese companies, banks and public finance institutions are deeply involved across the global gas supply chain.
In other words, Japan is building a global gas empire designed to reap corporate profits at a huge cost to the climate and our energy security.
Gas expansion poses one of the greatest threats to our planet and communities. According to Carbon Brief, gas played a larger role in increasing global emissions than coal in every year between 2013 and 2019.
Methane gas, a climate super-pollutant over 80 times more potent than CO2, leaks and is vented along the entire gas supply chain, and has reached record levels in our atmosphere.
Unlike gas, renewables like wind and solar are reliable, cheap and abundant. Yet over 99% of solar and wind potential in Southeast Asia remains untapped. Japan has an opportunity to lead the renewable energy transition, phase out fossil fuels, and deliver real energy security for Asia.
Ammonia co-firing extends the life of dirty coal plants
Despite global consensus that we must phase out coal, Japan is promoting the co-firing of ammonia at thermal power plants which will extend the lifetime of dirty coal plants. This technology is not economically viable and will not cut carbon emissions nearly enough to meet our climate goals.
To meet the Paris Agreement climate goals, OECD governments must phase out coal by 2030. Ammonia co-firing is a dangerous distraction.
Still financing new coal power plants
Despite its G7 commitment to not finance new coal plants after 2021, Japan is considering financing the Matarbari 2 and Indramayu coal plants.
We can’t solve the climate crisis by pouring more fuel onto the fire. Japan must place our planet and communities’ health over the short-term interests of Japanese banks and corporations. Japan must end its support for fossils.