Japan to tighten lending for overseas coal-fired power plants -Nikkei
TOKYO (Reuters) - Japan will tighten state-backed financing criteria for overseas coal-fired power plants after facing criticism over its support for the dirtiest fossil fuel, the Nikkei business newspaper reported on Thursday.
The move, expected to be announced later on Thursday, would mark a shift in Japan's strong official backing for coal, although some non-governmental organizations are sceptical about how far the changes will go.
Japan's government has received criticism from many quarters over its support, usually through the country's export credit agency, for construction of coal-fired plants in countries such as Indonesia and Vietnam, as well as the roll-out of new plants at home.
Japan will stop backing coal projects overseas in principle, the Nikkei newspaper reported.
The new policy will have exemptions, including backing for so-called integrated gasification combined cycle power stations that emit about 15% less carbon dioxide than regular plants, the Nikkei said.
The country will also continue to fund plants that use a combination of biomass and coal, along with projects that include plans for developing renewable energy.
An official in the Ministry of Economy, Trade and Industry, told Reuters it was not correct to say that Japan will not support the export of coal-fired power plants in principle, but the government will tighten conditions for exports.
Environment minister Shinjiro Koizumi said in December that global criticism of his country's "addiction to coal" was hitting home, but warned he had yet to win wider support to reduce support for fossil fuels.
In May, the governor of the Japan Bank for International Cooperation, Tadashi Maeda, was quoted by media as saying the bank would no longer accept loan applications for coal-fired power projects.
(Reporting by Aaron Sheldrick and Yuka Obayashi, editing by Sherry Jacob-Phillips and Jason Neely)
