The governor of the Japan Bank for International Cooperation has said that the government-owned financial institution will stop funding new coal-fired power plant projects overseas.
The comment Tuesday by Maeda Tadashi comes amid growing opposition to the use of coal and the role of banks in financing them.
He said, “The trend now is to shift away from carbon. Coal is increasingly being rejected as it is the energy source producing the most carbon dioxide emissions.”
JBIC has been funding energy projects overseas that involve Japanese businesses.
In December, the bank decided to jointly provide about 1.7 billion dollars in financing with private Japanese banks to build a coal-fired power plant in Vietnam. The Vung Ang 2 project has been the target of criticism from overseas investors.
Maeda said Vung Ang 2 would probably be the last project in which Japan’s private banks participate.