Coal news and updates

Japan and China remain among the world’s top coal industry lenders and underwriters, says a report. This despite both countries declaring intent to go carbon-neutral as part of their commitments to climate target set out in the Paris Agreement.

 

According to the study, the top financiers and investors behind the global coal industry (between October 2018 to October 2020) provided loans amounting to US$315 billion with the top three being Japanese — Mizuho (US$22 billion), Sumitomo Mitsui Banking Corporation (US$21 billion) and Mitsubishi UFJ Financial Group (US$18 billion).

 

China, although accounting for less than six per cent of total lending to the coal industry, is responsible for 58 per cent of underwriting with Chinese banks channelling US$467 billion to the coal industry in the past two years.

 

Earlier this month while addressing the Powering Past Coal Alliance, UN Secretary-General António Guterres said phasing out coal was the “single most important step to get in line with the 1.5-degree goal”. The Alliance includes countries, states and businesses committed to dropping coal from the energy sector.

 

Mizuho, Sumitomo Mitsui Banking Corporation and Mitsubishi UFJ Financial Group have each released statements that they will not fund new coal projects. But there are exceptions to these, and Vung Ang 2 falls into these exceptions, says Eri Watanabe, finance campaigner for 350.org Japan.

 

SciDev.Net has reached out to Sumitomo Mitsui Banking Corporation and Mitsubishi UFJ Financial Group for comments but has yet to hear back as of publication.

 

Mitsubishi Corporation, which is one of the companies under the Mitsubishi Group of Companies along with the Mitsubishi UFJ Financial Group, recently announced withdrawal from the Vinh Tan 3 coal-fired project in Vietnam.

 

However, the three Japanese banks are said to be financing the controversial Vung Ang 2 coal-fired power plant, says Watanabe.

 

The construction of Vung Ang 2 is being met with opposition from various groups who are calling on government and the private sector to withdraw support on charges that it goes against the Paris Agreement commitments.

 

“It is said that Vung Ang 2 is the last coal-fired power project that the megabanks would be involved in, but they still continue supporting coal-related companies, as you can see in the Global Coal Exit List,” says Watanabe.

 

She adds that Japanese banks also support fossil fuel investments such as the Line3 Tar sands pipeline in the US and the East African Crude Oil Pipeline in Uganda

 

Source : https://www.eco-business.com/news/