One of the last countries in the world to support coal-fired generation overseas is considering financing new capacity in Bangladesh.
The Japan International Cooperation Agency said in an email it’s conducting an environmental and social impact assessment for an expansion to the Matarbari power plant. JICA already agreed to finance the first 1.2 gigawatt phase of the project that is scheduled for completion in 2024, but hasn’t decided if it will finance the expansion, which would double the facility’s capacity.
READ MORE: Japan plans carbon emission cuts, more nuclear energy
If the expansion at the Bangladesh plant moves forward, it may prove awkward for Prime Minister Yoshihide Suga, who has pledged to make Japan carbon neutral by 2050
“In spite of difficulties, my government decided to do a survey and research on unit 3 and 4,” Naoki Ito, the Japanese ambassador to Bangladesh, said Thursday during a webinar hosted by the Centre for Policy Dialogue in Bangladesh, referring to the expansion. Changing climate policies have led the country to scrap dozens of plans for new coal plants, he said.
If the expansion moves forward, it may prove awkward for Prime Minister Yoshihide Suga, who has pledged to make Japan carbon neutral by 2050. While the country has tightened conditions for participation in overseas coal projects, it has left the door open to new plants if recipient countries commit to long-term decarbonization and support only the highest-efficiency plants.
A spokesperson for Suga’s cabinet office referred the matter to an official with the Foreign Ministry, who didn’t immediately respond to a phone call seeking comment late Monday.
ALSO READ: Japan's climate change efforts 'hindered by biased biz lobby'
The Governor of Japan Bank for International Cooperation, Tadashi Maeda, said earlier this month that the state-run lender has no immediate plans to finance any new coal-power projects. JBIC in December agreed to provide about US$636 million worth of project financing for the Vung Ang 2 plant in central Vietnam.
Japan’s commercial banks, including Mizuho Financial Group Inc and Mitsubishi UFJ Financial Group Inc, have pledged to phase out coal power financing amid pressure from environmental groups and investors.