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Japan maintains coal export support policy

  • Market: Coal, Electricity
  • 10/07/20

Japan has tightened some conditions but is maintaining its policy to back infrastructure exports for overseas coal-fired power developments.

Japan's environment, trade and industry (Meti), foreign affairs and finance ministries completed the policy review yesterday. The revised infrastructure export policy specifies technology subject to government funding. It also mandates Japan to set decarbonaisation strategies for importing countries.

The new policy enables the government to only finance firms' projects involving cutting-edge technology such as ultra-supercritical (USC) with more than 43pc generating efficiency, integrated coal gasification combined cycle (IGCC), biomass or ammonia co-firing, carbon dioxide capture and storage (CCUS) and carbon recycling that can contain CO2 emissions as much as IGCC.

The new policy also mandates Japan and importing countries to set long-term strategies towards decarbonaisation. But the policy does not specify details of such strategies.

Japan aims to maintain its competitiveness against China and South Korea by fulfilling the coal-fired technology demand of importing countries until they eventually decarbonise their power generation. But the environment ministry does not clarify whether the decarbonaisation goal indicates a complete shift to other fuels such as LNG and renewables, or continuous use of coal-fired units with CCUS or carbon recycling technologies.

The policy continues to limit funding for exports to countries, whose financial situation requires Japanese coal-fired power generation for stable energy supplies.

The old policy enabled Japanese firms to receive government funds for exporting USC or unspecified, more advanced coal technology to countries in dire need of it. It also required Japan to suggest methods to lower CO2 emissions and provide necessary support based on choices of importing countries.

Premier Shinzo Abe's government has been backing overseas investment in coal-fired power projects under an energy policy to tap growth potential in emerging economies.

But Japan has been moving away from coal-fired power generation amid rising global and domestic criticism including environment minister Shinjiro Koizumi's opposition. Japanese banks Mizuho and Sumitomo Mitsui Banking have toughened coal financing policies. Meti announced on 3 July moves to scrap inefficient coal-fired power units in Japan.


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28/07/25

ICJ opinion could open door for more climate litigation

ICJ opinion could open door for more climate litigation

London, 28 July (Argus) — A landmark outcome from the International Court of Justice (ICJ) on 23 July found that countries have an obligation to contribute to cutting emissions, and wealthy, industrialised nations should take the lead on tackling climate change. The court left the door open for further climate litigation, finding that breaching these obligations constitutes a "wrongful act" for which "injured states" could claim restitution and compensation. The ICJ's advisory opinions are not legally binding but carry significant weight and may contribute to the development of international law, non-profit the Centre for International Environmental Law says. International climate treaties — such as the 2015 Paris Agreement — "establish stringent obligations upon states to ensure the protection of the climate system and other parts of the environment from anthropogenic GHG [greenhouse gas] emissions", the ICJ said. Countries "must fulfil their duty to prevent significant harm to the environment by acting with due diligence", the ICJ said. It noted the discretion built into UN climate body the UNFCCC for nations to determine the means by which they cut emissions. But it was clear that "this discretion cannot serve as an excuse for states to refrain from co-operating with the required level of due diligence or to present their effort as an entirely voluntary contribution which cannot be subjected to scrutiny". The court found that countries party to the Paris Agreement have an obligation to present national climate plans that align with its primary temperature goal of limiting the global rise to 1.5°C from a pre-industrial baseline. The ICJ also focused on the primary cause of GHG emissions — burning fossil fuels. "Failure of a state to take appropriate action to protect the climate system from GHG emissions — including through fossil fuel production, fossil fuel consumption, the granting of fossil fuel exploration licences or the provision of fossil fuel subsidies — may constitute an internationally wrongful act... attributable to that state", it found. "Where several states are responsible for the same internationally wrongful act, the responsibility of each state may be invoked," it said. Definitive legal guidance The ICJ's opinion "will equip judges with definitive guidance that will likely shape climate cases for decades to come", environmental organisation ClientEarth lawyer Lea Main-Klingst previously told Argus . Existing pathways could allow countries to take legal action against other nations, "and no changes to international law are needed for it to happen", CIEL climate and energy programme director Nikki Reisch tells Argus . Individual states could vary in how they interpret the court's findings, but the opinion was comprehensive and punctured arguments often used to push back on more stringent climate action. The ICJ noted that "it is scientifically possible to determine each state's total contribution to global emissions, taking into account both historical and current emissions", and that states could be found responsible if they do not regulate emissions caused by "private actors" under their jurisdictions. Climate litigation has risen steadily in recent years and cases including those challenging fossil fuel projects are "more often reaching the highest courts around the world", researchers at the London School of Economics' Grantham Research Institute say. And the damage caused by climate change is growing, increasing the pressure to define legal parameters and responsibilities. The ICJ proceedings hit several milestones. The issue drew the highest level of participation in a proceeding seen by the ICJ or its predecessor. And the court adopted the advisory opinion unanimously — just the fifth time in its 80-year history that this has happened. But it made the point that international law is just one tool in the fight against climate change. The proceedings "concern an existential problem of planetary proportions", the ICJ said. "International law… has an important but ultimately limited role in resolving this problem". By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Australia’s Bowen Coking Coal cuts output in FY2024-25


28/07/25
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28/07/25

Australia’s Bowen Coking Coal cuts output in FY2024-25

Sydney, 28 July (Argus) — Australian producer Bowen Coking Coal (BCC) posted lower coal sales and production in the July 2024 to June 2025 financial year, despite operating at the upper end of its guidance range. The company produced 1.8mn t of saleable coal in 2024-25, down by 7.8pc from 1.9mn t in 2023-24, it announced in its latest quarterly report on 28 July. But its throughput increased. The company mined 2.9mn t of run-of-mine (ROM) coal in 2024-25, up by 2.3pc on the year, and on the upper end of its 2.7mn-3mn t guidance. BCC hit the lower end of its ROM guidance range at the end of May . BCC sold 1.8mn t of coal over the year, down by 7.5pc on the year, although the amount was at the upper end of its 1.6mn–1.9mn t guidance range. The company sold a mix of thermal coal, coking coal, and PCI coal, as in previous years. Coking coal and PCI accounted for 71.1pc of its sales in 2024-25, down from 74.4pc in 2023-24. The company will cut production at its flagship 5.5mn t/yr Burton mine complex in July-September, because of severe cash availability challenges. It expects to produce 500,000t of ROM coal over the quarter, down from 769,000t over the same period in 2024. Mining services firm BUMA has made financial claims totalling A$29.4mn ($19mn), but BCC cannot pay this while meeting its other payment obligations, BCC said on 28 July. It also needs to pay A$2.7mn in mineral royalties to the Queensland Revenue Office at the end of July. The company's cash reserves are falling relatively quickly. BCC had A$37.7mn of reserves — including A$19.4mn in restricted cash — on 28 July, down from A$45mn on 14 July . BCC has been suspended from quotation on the Australian Stock Exchange (ASX) since 15 July, pending a financing announcement. By Avinash Govind Bowen Coking Coal (quarterly report) mn t Apr-Jun '25 Apr-Jun '24 y-o-y Change (%) Jul '24 - Jun '25 Jul '23 - Jun '24 FY Change (%) ROM Coal 0.8 0.8 -8.3 2.9 2.9 2.3 Saleable Coal 0.4 0.5 -6.4 1.8 1.9 -7.8 Coal Sales (Produced) 0.4 0.4 -0.2 1.8 2 -7.5 Source: Bowen Coking Coal Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Eni’s 2Q profit hit by lower prices, 3pc output fall


25/07/25
News
25/07/25

Eni’s 2Q profit hit by lower prices, 3pc output fall

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Australian court blocks Mt Pleasant coal mine extension


25/07/25
News
25/07/25

Australian court blocks Mt Pleasant coal mine extension

Sydney, 25 July (Argus) — The New South Wales Court of Appeal, which oversees litigation in Australia's main thermal coal producing region, has blocked the extension of MACH Energy's 10mn t/yr run-of-mine (ROM) Mount Pleasant coal mine. The court's landmark decision on 24 July came in a case lodged against the Australian producer by an environmental group — the Denman, Aberdeen, Muswellbrook and Scone Health Environment Group. The court decided that the state's Independent Planning Commission (IDP) had made a procedural error when evaluating MACH Energy's application to extend the life of the Mount Pleasant mine by 22 years from 2026 to 2048, and increase its ROM limit to 21mn t/yr. The IDP needed to consider mine consent conditions to minimise Mount Pleasant's scope 3 CO2 equivalent (CO2e) emissions — stemming from coal use — and the specific impact it would have on the local climate, the court found. The appeals court has sent the case back to the New South Wales Land and Environment court to either declare the consent invalid or add additional conditions to it. MACH Energy will review the judgement and explore all avenues to ensure continuity and certainty for the local community, it said in a statement on 25 July. The Mount Pleasant mine was set to produce 12mn t of scope 1 CO2e emissions, 2.2mn t of scope 2 CO2e emissions, and 860mn t of scope 3 CO2e emission for the extension period of 22 years, according to a 2021 environmental impact assessment. For the July 2023-June 2024 fiscal year, the Mount Pleasant mine reported covered scope 1 emissions of 196,934t of CO2e under the safeguard mechanism, just below its 199,238t CO2e baseline. It earned 2,304 safeguard mechanism credits (SMCs) as a result. The Court of Appeal's decision may force a change to the state's planning process. Currently, state regulators do consider the environmental impacts of developments when making mine approval decisions but mainly focus on pollution and biodiversity. The court's ruling indicates that regulators may need to consider the climate impacts of projects with high scope 3 emissions going forward. The state government acknowledges the decision but won't further comment at this time, as the case has been forwarded to the Land and Environment Court, New South Wales' minister for planning and public spaces Paul Sculley told Argus on 25 July. MACH Energy has faced legal challenges to its Mount Pleasant mine expansion plans before. An Australian legal non-profit, the Environmental Defenders Office, challenged the project in 2022 , over the impact it could have on a species of legless lizards. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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TotalEnergies' 2Q output up but lower prices hit profit


24/07/25
News
24/07/25

TotalEnergies' 2Q output up but lower prices hit profit

London, 24 July (Argus) — TotalEnergies felt the effect of lower energy prices on its profitability in the second quarter, mitigated somewhat by a 2.5pc increase in production. The company said today its second-quarter profit fell by 29pc from a year earlier to $2.69bn, while its cash flow from operations — excluding working capital movements — came in 15pc lower at $6.6bn. During the period the price of Brent crude averaged $67.9/bl, against $85/bl in the second quarter 2024, and TotalEnergies cautioned of "abundant supply that is fueled by Opec+'s decision to unwind some voluntary production cuts and weak demand that is linked to the slowdown in global economic growth." Of TotalEnergies' upstream segments its Integrated LNG business put in the more robust performance. Its adjusted net operating income was down just 9.6pc at $1.04bn, as LNG production increased by nearly 10pc. Exploration & Production operating profit fell by 26pc to $1.97bn as the segment's production remained flat compared with a year earlier at 1.96mn b/d of oil equivalent (boe/d). TotalEnergies noted production had benefited from start-ups and ramp-ups at several projects over recent quarters. These include the Mero-2, Mero-3 and Mero-4 developments offshore Brazil, the Fenix field offshore Argentina, Tyra in Denmark, and the Anchor and Ballymore fields in the US Gulf of Mexico. The company's overall production in the second quarter averaged 2.5mn boe/d, which was up by 2.5pc from 2.44mn boe/d in April-June last year but 2pc lower than in the first quarter of this year. TotalEnergies said it remains on track to deliver its objective of 3pc production growth for 2025. A recent improvement in performance across TotalEnergies' downstream refining and chemicals businesses failed to translate into a better year-on-year result in the second quarter. The segment's adjusted net operating income of $389mn was well down from $639mn a year earlier. Throughputs in refining were up by 5.2pc on the year and refinery utilisation rate moved up to 90pc from 84pc, but refining margins were down by 21pc on a year earlier. Utilisation of TotalEnergies' chemicals plants was down from a year earlier. Two segments that enjoyed a earnings boost in the quarter were Marketing & Services and Integrated Power. The downstream retail business' operating profit rose by 8.7pc on the year to $412mn, while Integrated Power's operating profit jumped by 14pc to $574mn. The latter — which uses a business model of what TotalEnergies calls "clean firm power" with renewable capacity backed by gas-fired plants — saw net power production increase by 28pc on the year to 11.6TWh. This, Total said, was driven by growth in renewable energy production and by a 2024 acquisition of flexible gas capacities in the UK. TotalEnergies confirmed its second interim dividend for 2025 will be €0.85/share — a 7.6pc increase compared with 2024 — and that it would continue its share buyback programme at a rate of $2bn/quarter. The company expects capital spending this year will be within a $17bn-17.5bn range. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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