The government likely will tighten the conditions under which official assistance will be provided for exporting coal-fired power plants, The Yomiuri Shimbun has learned.
The move is aimed at demonstrating a greater commitment by Japan to cut greenhouse gas emissions.
The government will consider specifying in an official document a plan to withhold in principle such assistance for the export of inefficient coal-fired power plants that generate large volumes of carbon dioxide. Tighter conditions also will be set on support for highly efficient plants that emit much less carbon dioxide.
The Management Council for Infrastructure Strategy, which is chaired by Chief Cabinet Secretary Yoshihide Suga, will specify the changes in a soon-to-be-revised export strategy document accompanying the official document. The precise wording is being coordinated with the Economy, Trade and Industry Ministry and the Environment Ministry.
The government is finalizing a plan to shut or suspend operations of about 90% of 114 inefficient coal-fired power plants in Japan by fiscal 2030. Tightening the conditions under which official funding will be provided for exports of such plants will mark a sharp turn toward reducing carbon emissions. Infrastructure projects already underway will continue as planned.
The government currently has four conditions under which public funding may be provided for exports of coal-fired plants. These conditions include the partner nation having no option but to choose coal as a cheap energy source, and that the nation has requested Japan's highly efficient coal-fired power generation technology. Provided these conditions are met, public funding is given through the government's official development assistance or loans from government-related financial organizations.
However, international criticism of coal-fired plants has been mounting because their carbon dioxide emissions run counter to efforts to combat global warming. In Japan, a growing number of private financial institutions have declared they will not invest in or provide loans for coal-fired thermal power, or support exports of inefficient coal-fired plants. This also spurred the government to tighten the conditions for such projects.
Indonesia, Vietnam and Bangladesh are among the many nations in Asia keen to build new coal-fired power plants because of factors such as coal's cheap price. Restricting these exports to friendly nations and setting stricter conditions will leave the door open to providing public assistance for such projects.
Japan possesses cutting-edge technology needed for highly efficient coal-fired power plants. The government hopes to contribute to global warming countermeasures by pushing Asian nations that were considering building inefficient plants to instead buy facilities that can be expected to produce less carbon dioxide.
Read more from The Japan News at https://japannews.yomiuri.co.jp/
