JBIC financing

 

  Fact sheet 2: Japan Bank for International Cooperation (JBIC) and Coal Financing

Yuki Tanabe, Japan Center for a Sustainable Environment and Society (JACSES) (Update: May 20, 2016))

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About the Japan Bank for International Cooperation (JBIC)

JBIC is a 100% government-funded financial institution that was established with the aim to acquire foreign resources while strengthening the international competitiveness of Japanese companies. The Ministry of Finance’s International Bureau manages JBIC’s financial affairs.

1. Facts about JBIC’s financing of coal-fired power plants

JBIC is a 100% government-funded financial institution that was established with the aim to acquire foreign resources while strengthening the international competitiveness of Japanese companies. As of March, 2015, JBIC’s outstanding loans reached 14.6 trillion yen and their outstanding guarantees totaled 2.5 trillion yen. The Ministry of Finance’s International Bureau manages JBIC’s financial affairs.

From 2003 to 2016, JBIC has invested in 24 coal-fired thermal power plant projects which had a combined total of more than 24GW of electricity. Of these 24 projects, 6 are in India, 5 in Indonesia, 5 in Vietnam 2 in Morocco. JBIC has invested more than 8.5 billion USD. (about 1 trillion yen) (See Appendix 1: List of Coal-fired power plants funded by JBIC)

These 24 power plants have the capacity to emit 120 million tons[1] of CO2 per year which is 1/10th of Japan’s domestic CO2 emissions[2] and equivalent to more than half of the nation’s CO2 emissions from coal-fired power plants.[3] If this trend continues for a 10 year period, greenhouse gas emissions which can rival Japan’s (the 5th largest emitter in the world) total emissions will be emitted.

Related Article: Report “Dirty Coal: Breaking the Myth About Japanese-Funded Coal Plants” was published.

*Footnotes

[1] This data is from a report entitled “The Future of Coal” from the Massachusetts Institute of Technology. A 500MW coal-fired power plant can emit approximately 3 million tons of CO2 per year. http://web.mit.edu/coal/

[2] This data (1.48 billion tons) is from the Ministry of Environment’s 2013 report on its preliminary figures for greenhouse gas emissions. http://www.env.go.jp/earth/ondanka/ghg/

[3] This data is from the Agency of Natural Resources and Energy’s document entitled “The Direction of Our Nation’s Coal Policies”. 2010 fuel carbon dioxide emissi

2. Overseas Coal-fired Power Generation funded by Public Finance Institutions

According to the report “Under the Rug” published by WWF, Natural Resources Defense Council (NRDC) and Oil Change International, Japan is the largest contributor for international coal related projects from 2007 to 2014, and provided 20 billion USD. China is the 2nd, and provided 15 billion USD. By Institutions, JBIC is the largest institution, and provided 12 billion USD. The 2nd is World Bank, provided 6 billion USD.

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Figure 1: Public support for international coal related projects, by country (2007-2014)

 

3. Efficiency of Coal-fired Power Generation funded by JBIC

Table 1 is a comparison of combustion technology mix between JBIC-funded coal plants and all coal plants worldwide.[4] As a result, JBIC-financed coal plants are less efficient than the global average.

Table 1: Comparison of combustion technology mix between JBIC-funded coal plants and all coal

 JBIC-funded plants Worldwide plants
Subcritical  31%  29%
Supercritical (SC)  62%  36%
Ultra-Supercritical (USC)  7%  29%
Other/Unknown  0%  6%

In addition, the Table 2 shows Supercritical (SC) and Ultra-Supercritical (USC) plants operated, constructed or planed in South Asia and Southeast Asia exported by Japan, China, South Korea, India and Russia. [5] Japan is not only a country who is providing high efficient coal plant technology.

Table 2: Supercritical and Ultra-Supercritical plants operated, constructed or planed in South Asia
and Southeast Asia exported by Japan, China, South Korea, India and Russia (Unit: MW)

Japan China South Korea India Russia
Supercritical 10,090 55,650 11,300 40,320 1,980
Ultra-Supercritical 2,000 2,680 2,680 1,320 0

*Footnotes

[4] Dirty Coal – Breaking the Myth About Japanese-Funded Coal Plants http://www.kikonet.org/wp/wp-content/uploads/2015/04/Dirty-Coal-JBIC_EN.pdf

[5] Coal finance: will the OECD lag behind emerging countries because of Japan? http://sekitan.jp/jbic/wp-content/uploads/2015/10/NGOs-Will-OECD-lag-behind-emerging-countries-Oct15_final3.pdf

4. Pollution control of Coal-fired Power Generation funded by JBIC

According to our research on SO2 pollution control and particulate control technologies used by JBIC-funded coal plants, scrubbers are not used in half of JBIC-funded plants, and adequate particulate control technologies such as fabric filter and cold side electrostatic precipitators (ESP) are not used in 80% of JBIC-funded plants.[6]

Moreover, when we compare the pollution control technology between coal-fired power plants in Japan and ones overseas supported or to be supported by JBIC, emission levels of JBIC-funded coal-fired power plants are significantly higher than that of domestic plants. (See Appendix 2: Comparison of the pollution control technology between coal-fired power plants in Japan and ones overseas supported (to be supported) by JBIC)

*Footnotes

[6] Dirty Coal – Breaking the Myth About Japanese-Funded Coal Plants http://www.kikonet.org/wp/wp-content/uploads/2015/04/Dirty-Coal-JBIC_EN.pdf

Download file here

Fact sheet: Coal-fired power plants funded by Japan Bank for International Cooperation (JBIC) – Including Appendix 1 and 2 (PDF)