Page 8 - AsiaElec Week 09 2021

AsiaElec COAL AsiaElec

Japan’s JBIC finally backs away

from funding coal power

JAPAN JAPAN’S development bank, the Japan Bank power.
for International Cooperation (JBIC), is to stop However, JBIC has used this fund to back gas
funding new coal-fired power plant projects and high-efficiency coal-fired power generation,
overseas. arguing that they are also eligible for environ-
JBIC governor Maeda Tadashi said this week mental funding.
that the decision had come amid growing oppo- Vung Ang 2 is a planned 1,200-MW plant in
sition to the use of coal and the role of banks in central Vietnam. It will be built next to the exist-
financing such plants. ing Vung Ang plant.
He said: “The trend now is to shift away from According to local media, in 2017 local resi-
carbon. Coal is increasingly being rejected, as it dents blocked coal trucks leading to this plant in
is the energy source producing the most carbon protest against the pollution and road damage
dioxide emissions.” they cause.
JBIC has been funding energy projects over- The plant will emit several times more sul-
seas that involve Japanese businesses. phur dioxide, nitrogen oxide and fine particu-
In December, the bank decided to jointly pro- late matter than would be allowed if it were in
vide $1.7bn in financing with a range of private Japan, according to analysis from the Centre for
Japanese banks to build a coal-fired power plant Research on Energy and Clean Air.
in Vietnam. JBIC’s decision to make Vung Ang 2 its last
The Vung Ang 2 project has been the target of coal project follows a similar one by South
criticism from overseas investors. Korea’s Samsung.
Maeda said Vung Ang 2 would probably be In October 2020, Samsung executives told the
the last such project in which Japan’s private South Korean parliament that its reputation had
banks participate. been damaged by its involvement in building the
In December, JBIC said it would invest 1,200-MW Vung Ang 2 coal-fired power plant
$636mn in Vung Ang 2 through its Growth in Vietnam.
Investment Facility. Meanwhile, Samsung C&T vice-president
The facility was originally intended to “pro- Oh Se-chul said that Samsung C&T, the subsidi-
vide support for a variety of infrastructure ary building the plant, would not build any more
projects that contribute to environmental pres- coal plants after Vung Ang 2.™
ervation” such as public transport and wind

P8 www. NEWSBASE .com Week 09 03•March•2021