AIRLINK 75.30 Increased By ▲ 1.60 (2.17%)
BOP 4.94 Increased By ▲ 0.04 (0.82%)
CNERGY 4.39 Decreased By ▼ -0.13 (-2.88%)
DFML 41.18 Decreased By ▼ -3.70 (-8.24%)
DGKC 83.31 Decreased By ▼ -2.19 (-2.56%)
FCCL 21.65 Increased By ▲ 0.25 (1.17%)
FFBL 32.00 Decreased By ▼ -0.51 (-1.57%)
FFL 9.42 Decreased By ▼ -0.17 (-1.77%)
GGL 10.08 Decreased By ▼ -0.19 (-1.85%)
HASCOL 6.82 Decreased By ▼ -0.31 (-4.35%)
HBL 114.00 Decreased By ▼ -0.70 (-0.61%)
HUBC 139.10 No Change ▼ 0.00 (0%)
HUMNL 12.00 Decreased By ▼ -0.42 (-3.38%)
KEL 4.91 Decreased By ▼ -0.12 (-2.39%)
KOSM 4.36 Decreased By ▼ -0.09 (-2.02%)
MLCF 37.51 Decreased By ▼ -0.09 (-0.24%)
OGDC 132.85 Decreased By ▼ -3.95 (-2.89%)
PAEL 24.85 Decreased By ▼ -0.54 (-2.13%)
PIBTL 6.60 Decreased By ▼ -0.09 (-1.35%)
PPL 117.80 Decreased By ▼ -3.20 (-2.64%)
PRL 26.06 Decreased By ▼ -0.53 (-1.99%)
PTC 13.72 Decreased By ▼ -0.38 (-2.7%)
SEARL 57.25 Decreased By ▼ -0.05 (-0.09%)
SNGP 66.50 Decreased By ▼ -1.50 (-2.21%)
SSGC 10.24 Decreased By ▼ -0.18 (-1.73%)
TELE 8.21 Decreased By ▼ -0.24 (-2.84%)
TPLP 10.70 Decreased By ▼ -0.28 (-2.55%)
TRG 62.40 Decreased By ▼ -0.94 (-1.48%)
UNITY 27.04 Decreased By ▼ -0.01 (-0.04%)
WTL 1.35 Decreased By ▼ -0.03 (-2.17%)
BR100 7,846 Decreased By -95 (-1.2%)
BR30 25,256 Decreased By -391.8 (-1.53%)
KSE100 74,836 Decreased By -681.2 (-0.9%)
KSE30 24,004 Decreased By -273.3 (-1.13%)
Business & Finance

Japan's SMFG to halt all new financing of coal-fired power plants

  • The move by Japan's second largest bank by assets comes after Prime Minister Yoshihide Suga announced last month that the country aims to nearly double its target for cutting carbon emissions and as governments and companies globally move towards decarbonisation.
Published May 12, 2021

TOKYO: Sumitomo Mitsui Financial Group Inc said on Wednesday it is halting new financing for all coal-fired power plants, becoming the first major Japanese lender to make such a pledge amid increasing pressure on banks to cut coal-based funding.

The move by Japan's second largest bank by assets comes after Prime Minister Yoshihide Suga announced last month that the country aims to nearly double its target for cutting carbon emissions and as governments and companies globally move towards decarbonisation.

While SMFG had not previously ruled out funding projects considered to be more environmentally friendly, such as so-called ultra-supercritical (USC) power plants that burn coal more efficiently than older designs, it removed the exception from its updated lending policy.

Reuters previously reported this potential move in early March.

"We have gotten rid of the criteria as some study showed even USC power plants would not reduce CO2 emissions dramatically," Tatsuya Takeda, general manager of SMFG's corporate sustainability department, told an online press briefing.

Market Forces, an Australian-based group that campaigns for banks and investment funds to end funding of fossil fuels as the climate crisis intensifies, welcomed the move but said SMFG should tighten its policies further.

"SMBC Group has taken a forward step in closing their previous policy loophole on lending to new coal power projects," Megu Fukuzawa, a Market Forces campaigner, told Reuters by email.

"However, it is disappointing that it will still allow support for carbon capture and storage or mixed combustion technologies," Fukuzawa added.

SMBC's bigger rival, Mitsubishi UFJ Financial Group Inc, said last month it would stop financing upgrades of existing coal-fired power plants.

Comments

Comments are closed.