Projects
The Japanese government, megabanks and developers have poured billions of dollars and resources into developing fossil fuel projects around the globe. Here are a few controversial ones. They represent a broader, global system of repeated extraction and harm.
The Wet’suwet’en have waged an intense fight to stop the LNG Canada export terminal and associated Coastal Gas Link pipeline. The LNG Canada project involves the liquefaction of shale gas extracted from Montney, British Columbia and transported through the 670 kilometer Coastal Gaslink pipeline to Kitimat.
In addition to its climate impacts, serious human rights violations against Indigenous Peoples have been reported with the Coastal GasLink pipeline project.
In 2021, JBIC approved a $850 million loan for LNG Canada, while a loan from Japanese megabanks (Mizuho, MUFG, and SMBC) and Mitsubishi Corporation’s direct investment enabled the construction of the Coastal GasLink pipeline. JBIC’s decision to finance the project violates international law and JBIC’s own environmental and social consideration guidelines which require that the free, prior and informed consent of indigenous peoples be obtained prior to financing.
Moheshkhali-Matarbari Integrated Infrastructure Development Initiative (MIDI), Bangladesh
After facing fierce opposition from local communities and NGOs, the Japanese government pulled out of financing the Matarbari Phase 2 coal-fired project in Bangladesh. However, as for the JICA-supported Matarbari Phase 1 project, operating since 2024, and more than 2,000 fishermen who used to rely on the river have lost their livelihoods due to construction of Matarbari 1.
The 1,200 MW Matarbari phase 1 coal project had been a part of a larger collaboration between JICA and the Bangladeshi government under the recently ousted Prime Minister Hasina – the Moheshkhali-Matarbari Integrated Infrastructure Development Initiative (MIDI). It includes multiple fossil fuel-power plants and deep-sea port infrastructure.
The project’s development has displaced hundreds of families and polluted the surrounding saltwater, devastating shrimp and salt farms and leaving communities jobless. Transportation has been disrupted as boats cannot navigate the river anymore and mangrove forests along the riverbank have also been destroyed.
JICA has poured over 4 billion USD in loans to this coal-fired power plant that has come under investigation for corruption. The Japanese government has also pumped 363 million USD into the construction of the Matarbari deep-sea port and has claimed this as climate adaptation finance despite the project expanding fossil fuels, the number one driver of climate change, in a country already facing its harshest impacts. JICA is also pushing Bangladesh to develop 13GW of LNG thermal power expansion. Exposing Bangladesh to the volatile LNG market will put further financial stress on the debt-stricken country.
Freeport LNG Terminal
The Freeport LNG project in Texas is a clear example of how LNG developers all too often prioritise profits over the safety and well-being of local communities. In 2022, a major explosion sent a fireball 450 feet into the sky injuring those nearby and releasing almost 120,000 cubic feet of methane, carbon monoxide, benzene, and other highly dangerous chemicals. The project was offline for 8 months following the explosion, causing significant losses for companies contracting from the project and has since struggled with operational problems.
The project received a $2.6 billion loan from the Japan Bank for International Cooperation (JBIC) and $1.15 billion in guarantees from Nippon Export and Investment Insurance (NEXI). Japanese utilities and megabanks are also bankrolling the project.
Freeport residents face disproportionate rates of diseases and critical health issues, with the county’s air quality being consistently graded as “F” grade from the American Lung Association.
The problems with Freeport LNG are not isolated. Just 200 miles away, the Japanese- financed Cameron LNG terminal in Louisiana has experienced 67 toxic gas “spills” since its export operations began. Japanese banks have pumped USD 43.1 billion into U.S. LNG, surpassing American financial institutions and making Japan the biggest backer of U.S. LNG. NEXI is considering financing for the expansion of the Cameron LNG terminal.