Public Finance
Japan is one of the world’s largest providers of public finance for fossil fuels since the Paris Agreement, bankrolling this industry to the tune of USD $6.9 billion on average each year from 2020-2022. This is more than four times higher than Japan’s finance for clean energy in the same period.
Globally, Japan’s international finance institutions, including Japan International Cooperation Agency (JICA), Japan Organization for Metals and Energy Security (JOGMEC), and the Development Bank of Japan are leaders in fossil fuel expansion.
Among these, Japan Bank for International Cooperation (JBIC) is particularly egregious, providing 55% of Japan’s public finance for overseas oil and gas projects. In 2024 alone, JBIC’s attributable emissions reached 408 million tons CO2-equivalent. If JBIC were treated as a country, this would make it the 20th-largest emitter in the world, exceeding the annual emissions of France, the United Kingdom and Italy.
Despite a commitment amongst G7 countries to end direct public finance for overseas fossil fuel projects, JBIC continues to violate this policy, providing over $3 billion to fossil fuels since the end of 2022, when Japan made this commitment.
International public finance for fossil fuels has dropped sharply since wealthy countries signed onto the Clean Energy Transition Partnership (CETP). In fact, these countries have reduced their fossil fuel finance by 78%. While these countries must still scale up renewables, we’re seeing a global shift, with leading governments aligning their public finance with climate goals.
However, Japan is blocking global progress to address climate change and instead is doubling down on its finance for fossil fuels.
In April 2021, Japan created a policy package that includes $10 billion in public and private financial support to expand LNG markets in Asia.
Despite growing recognition that there is no room for gas and coal expansion, Japan expanded JOGMEC’s mandate to allow financing of Japanese companies involved with midstream LNG infrastructure. In 2021, JBIC approved a $346 million loan for the dirty Barossa gas development project in Australia and a $850 billion loan for the LNG Canada export terminal which has faced intense indigenous resistance.
The Japanese government has continued financing overseas LNG and gas infrastructure despite global commitments to end fossil fuel expansion. Despite the G7 commitment, Japan continues funding oil and gas expansion.
Japan’s support for fossil fuels is undermining our climate goals and puts our planet and our communities at risk.