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Japan to End Financing of Key Coal Projects Under Climate Pledge

Nation will stop providing low-interest loans to developments in Bangladesh and Indonesia as Group of Seven nations push to phase out the fuel.

Coal is loaded onto a dump truck at Cirebon Port in West Java. — Coal is loaded onto a dump truck at Cirebon Port in West Java.
Photographer: Dimas Ardian/Bloomberg

By

Ryotaro Nakamaru

June 23, 2022, 3:36 AM UTCUpdated onJune 23, 2022, 6:32 AM UTC

Japan will withdraw financing for key coal-fired power plant projects in Bangladesh and Indonesia under efforts aimed at accelerating a global phase-out of the dirtiest fossil fuel.

Asia’s second-largest economy will stop providing government-backed yen loans to the Matarbari 2 coal expansion project in Bangladesh and the Indramayu plant in Indonesia, the country’s Foreign Ministry said in a statement.