Japan is one of the world’s largest public financers in gas and oil production, despite the pledge to conduct all search funds for fossil fuels at the G7 Summit in 2022.
From 2013 to 2024, Japanese public financial institutions provided $ 93 billion (€ 82 billion) investment for oil and gas projects, a report South Korea-based solutions for our climate (SFOC). The amount of foreign liquefied natural gas (LNG) development projects was $ 56 billion of this financing.
In the same period, the report estimates that $ 24.5 billion is estimated in funding for clean energy projects.
“Japan’s international influence in energy financing, and especially fossil fuel finance, is very large,” said Walter James, a private advisor to focus on Japan’s climate and energy policies.
“This is actually in the fossil fuel supply chain … for real use and power plants from investigation, production, transportation and power plants.”
The US-based research center, Institute for Energy Economics and Financial Analysis (IEEEFA), calls the “Japanese model” of LNG investment, to encourage Japan’s decades of policy development to “LNG export projects” to encourage direct investment in LNG export projects, “LNG in Asia Pacific has changed Japanese.
a report IEEFA states that Japan benefits in two ways: by having more access to the LNG supply for its domestic energy needs, and “the demand centers improved to the access centers where the Japan can make the surplus LNG again useless.”
The IEEFA report said, “Japan’s LNG has reconsidered the foreign markets, which has reached a record height, indicating a change in its role within the global LNG market.”
Another IEEFA report shows Australian LNG as the top supply of supply for Japanese LNG shipment in third countries.
At the same time, Japan depends on energy imports to fuel its economy, with a very low domestic access to fossil fuels. According to data cited by the Asia Natural Gas and Energy Association, oil, coal and LNG make more than 83% of Japan’s primary energy mixture.
Japanese ‘Greenwash’ with LNG?
After a pledge of Japan’s fossil fuel at the 2022 G7 summit to prevent fossil fuel projects, it launched the Asia Zero Emissions Committee (Azec) with partner countries in Asia to provide a platform for collaboration for “pure zero emissions in the Asia region” in Asia.
In August 2024, a total of 70 memorandums (MoUs) were signed with 11 countries including Australia, Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam.
However, many projects focus on developing natural gas, ammonia and carbon capture storage (CCS) technology.
LNG is considered a “transitional fuel” for Japan’s partner country in AZEC.
However, a 2024 study by Cornell University found that LNG includes 33% more emission than coal, when processing and shipping are considered.
Friends of the Earth on the NGO, according to the development finance and environmental pracharak Hiroki Osaka in Japan, allows investing in Lofols LNG projects in Japan’s G7 pledge, even though it contributes to greenhouse gas emissions.
Osada said that Tokyo’s pledge was based on “unstated fossil projects”, so if the countries decide that the projects are “ab -weed” like people using CCS, they can go further.
“Unstated” refers to using fossil fuels without taking any measures to reduce greenhouse gas emissions, discovery as CCS. On the other hand, fossil fuels use measures to reduce emissions.
“This is a form of greenwashing,” Osada told DW. “There is another loop hole if the projects are considered ‘unwanted’ [Paris Agreement] Or energy is necessary for security and diplomacy, they are appropriate. ,
Indonesia as an example
Indonesia signed a deal in November 2022 to raise $ 20 billion in public and private finance at the G20 summit under the leadership of US and Japan.
According to Osada, Japan “helped write” Indonesia’s long -term energy plan “such as gas will be demanded.”
“A lot of renewable capacity is available and it is really cheap and more beneficial for the whole of Southeast Asia, while LNG is very expensive and if there is any blackout they cannot import,” he said.
The cost of natural gas in Indonesia is higher than renewal, according to the Counting for the Institute for Essential Services Reform, Indonesian Energy and Environment Policy Research Center.
So Indonesia is the largest coal exporter in the world, and coal includes more than 40% of its energy consumption. To take out coal and oil, Indonesia launched a $ 1.5 billion LNG distribution project to feed power plants in March.
However, the policy strategist at Indonesian NGO Serah, Vikasono Gitavon, told DW that more foreign investment in LNG would disrupt Indonesia’s future infection to renewable energy.
“I really feel that Japan should quit investing in gas [in Indonesia] And pushing for renewal, “Gitavon said.
“We already have a coal infrastructure. They are now emphasizing for gas, and gas is a big investment, so it will be another lock-in. If we have a gas infrastructure in Indonesia, I don’t think air will be able to achieve energy infection.”
Energy Policy Advisor James said that Japan seeks a meeting for technology and investment from countries like Indonesia.
“Indonesia came with its own energy transition strategies and includes things such as natural gas and coal firing with LNG, ammonia and hydrogen – Japan would like to sell and invest,” Herr said.
The third AZEC meeting is slaughtered to be a hero in Malaysia this September.
Edited by: Wesley Rahan
