JBIC becomes third Japanese bank in a month to signal move away from coal
(Eco Business, 24 Apr 2020) JBIC’s governor has said the bank will no longer accept loan applications for new coal power projects. The statement comes as more Asian firms ditch coal, underscoring that the capital flight from the fossil fuel is accelerating.
Japan Bank for International Cooperation (JBIC) will henceforth reject requests for loans for new coal projects, the bank’s head, Tadashi Maeda, was reported saying on Wednesday, making it the third Japanese financial institution to signal a shift away from the world’s dirtiest fossil fuel this month.
The government-run firm, which has lent billions to coal developers over the years, will no longer accept loan applications for new coal-fired power stations, said the governor in an interview with Japanese business magazine Diamond Online, explaining that assessments of coal investments took too long, which could lock countries into energy technology that could be outdated by the time a decision was reached.
He cited Vung Ang 2, a controversial 1,200-megawatt coal power plant in Vietnam, for which JBIC received a loan application more than a decade ago. Until today, however, the company has not made up its mind whether it will support the project.