Policy Update

Ignoring international criticism, Japan says it will continue to offer assistance for coal-fired power projects in low-income Asia

The Japanese government has declared that it will continue to provide assistance to low-income Asian countries for coal-fired power projects, despite international pressure to move to renewable energy sources.

In April of 2019, the Japan Bank for International Cooperation (JBIC), in collaboration with other banks, agreed to offer a loan of up to US$1.2 billion to fund a coal-fired power generation project in Vietnam, which will be insured by Nippon Export and Investment Insurance and funded by taxpayers. Two months later, the Japan International Cooperation Agency (JICA) signed an agreement to extend a loan of up to US$1.3 billion to Bangladesh for a coal-fired power generation project.

Japan itself still heavily relies on coal power and maintains that replacing old coal infrastructure with newer technology is a sufficient contribution to long-term efforts to reduce greenhouse gas emissions.

News article – Japan Times