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.

By Nanami Oki

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22/11/24

Cop: Drafts point to trade-off on finance, fossil fuels

Baku, 22 November (Argus) — The new draft on the climate finance goal from the UN Cop 29 climate summit presidency has developed nations contributing $250bn/yr by 2035, while language on fossil fuels has been dropped, indicating work towards a compromise on these two central issues. There is no mention of fossil fuels in either the new draft text on the global stocktake — which follows up the outcome of Cop 28 last year, including "transitioning away" from fossil fuels — or in the new draft for the climate finance goal. Developed countries wanted a reference to moving away from fossil fuels included, indicating that not having one would be a red line. The new draft text on the climate finance goal would mark a substantial compromise for developing countries, with non-profit WRI noting that this is "the bridging text". Parties are negotiating the next iteration of the $100bn/yr that developed countries agreed to deliver to developing nations over 2020-25 — known as the new collective quantified goal (NCQG). The new draft sets out a figure of $250bn/yr by 2035, "from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources". It also notes that developed countries will "take the lead". It sets out that the finance could come from multilateral development banks (MDBs) too. "It has been a significant lift over the past decade to meet the prior, smaller goal... $250bn will require even more ambition and extraordinary reach," a US official said. "This goal will need to be supported by ambitious bilateral action, MDB contributions and efforts to better mobilise private finance, among other critical factors," the official added. India had indicated earlier this week that the country was seeking around $600bn/yr for a public finance layer from developed countries. Developing countries had been asking for $1.3 trillion/yr in climate finance from developed countries, a sum which the new text instead calls for "all actors" to work toward. The draft text acknowledges the need to "enable the scaling up of financing… from all public and private sources" to that figure. On the contributor base — which developed countries have long pushed to expand — the text indicates that climate finance contributions from developing countries could supplement the finance goal. It is unclear how this language will land with developing nations. China yesterday reiterated that "the voluntary support" of the global south is not part of the goal. The global stocktake draft largely focuses on the initiatives set out by the Cop 29 presidency, on enhancing power grids and energy storage, though it does stress the "urgent need for accelerated implementation of domestic mitigation measures". It dropped a previous option, opposed by Saudi Arabia, that mentioned actions aimed at "transitioning away from fossil fuels". Mitigation, or cutting emissions, and climate finance have been the overriding issues at Cop 29. Developing countries have long said they cannot decarbonise or implement an energy transition without adequate finance. Developed countries are calling for substantially stronger global action on emissions reduction. By Georgia Gratton and Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Japan’s Taketoyo to resume biomass co-firing in 2027

22/11/24

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22/11/24

Japan’s Taketoyo to resume biomass co-firing in 2027

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Cost of government support for fossil fuels still high

21/11/24

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21/11/24

Cost of government support for fossil fuels still high

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Cop: Talks in Baku torn between mitigation and finance

21/11/24

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21/11/24

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Cop: EU, four countries commit to 1.5°C climate plans

21/11/24

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Cop: EU, four countries commit to 1.5°C climate plans

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