Japan says it will tighten rules for overseas coal plant financing

first_imgJapan says it will tighten rules for overseas coal plant financing FacebookTwitterLinkedInEmailPrint分享Reuters:The Japanese government on Thursday said it will tighten state-backed financing criteria for overseas coal-fired power plants after facing criticism over its support for the dirtiest fossil fuel  The move marks a partial shift away from Japan’s strong official backing for coal but includes exemptions, leaving some non-governmental organizations sceptical about how much impact the new approach will have.“As a principle, the government will not provide assistance for new coal projects to those countries where Japan is not fully aware of the local energy situation and challenges or policies for decarbonisation,” the government said in a statement.It has received criticism from many quarters over its support, usually through Japan’s export credit agency, for the construction of coal-fired plants in countries such as Indonesia and Vietnam, as well as new plants at home.Japan’s latest move includes exemptions, however, such as when there are no alternatives to coal for the energy stability of a country seeking to build a coal-fired station provided it uses so-called clean coal technology from Japan.Japan’s private banks and companies have been tightening coal policies or cutting investments.That partly reflects the fact that renewable energy and natural gas are getting cheaper, with many countries turning away from coal, one analyst said.“The economics have moved so far and this is just Japan catching up with the economics,” said Tim Buckley, director of energy finance studies Australia/South Asia at the Institute Economics and Financial Analysis.[Aaron Sheldrick and Yuka Obayashi]More: Japan tightens rules on support for overseas coal-fired plantslast_img

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