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Japan’s carbon-neutral pledge likely to hit Australian coal markets hard

November 01, 2020


Japan’s shock pledge this week to become a carbon neutral economy by 2050 will accelerate the Asian country’s move away from using carbon-emitting thermal coal in power generation in favour of renewable energy and hydrogen.

Prime Minister Yoshihide Suga’s commitment brings Japan into line with other developed countries that have stated an intention to adhere to the Paris Agreement on Climate Change.

Energy expert Tim Buckley, director of energy finance studies at the Institute for Energy Economics and Financial Analysis (IEEFA), said Japan has been quietly shifting away from coal use for some time.

“Global capital is fleeing fossil fuels, starting with throwing thermal coal under the bus,” he said. 

[Mike Cooper]

More: ASX thermal coal plays in the spotlight after Japan’s 2050 carbon pledge

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