US and other G7 members oppose Japan’s push for fossil fuel investment
GROUP of Seven (G7) nations are pushing back against Japan’s proposal to use its presidency of the bloc to advocate for natural gas investment and the deployment of technologies to support the use of fossil fuels for power generation.
Officials from members including the US and UK have questioned an initial draft communique ahead of a meeting of energy, climate and environment ministers next month, arguing there’s too little emphasis on efforts to accelerate climate action, according to people familiar with the matter.
There’s concern from some nations over the lack of a deadline for the phase-out of coal, and that the text doesn’t offer a more ambitious plan to eliminate the use of all fossil fuels in the power sector, said the people, who requested anonymity as the discussions are private.
In a first draft prepared last month and seen by Bloomberg, Japan called for support for “the need for upstream investment of LNG and natural gas”. It cited the impact of declining Russian gas production and rising demand for the fuel “as a transition energy, including in emerging economies”.
The text has since been the subject of ongoing negotiations, the people said.
Japan is also seeking backing for the use of hydrogen and ammonia as a tool to curb emissions from thermal power generation, according to the draft text. That approach has prompted concern on environmental and economic grounds, as critics say using ammonia to generate power with less carbon dioxide emissions is costly, inefficient and releases other greenhouse gases instead.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Japanese companies including Jera have been working on domestic projects, and developments in nations including the Philippines, Taiwan and Thailand to retrofit power plants to blend, or co-fire, some ammonia alongside coal to reduce carbon dioxide emissions.
Representatives for Japan’s Ministry of Economy, Trade and Industry weren’t immediately available to respond to a request for comment. US government spokespeople did not respond to requests for comment. A spokesperson for the UK government said talks with the rest of the G7 are ongoing.
The stance from Japan — a nation that’s heavily reliant on fuel imports and the only Asian country in the G7 — echoes the region’s doubling down on coal after last year’s energy crisis, with countries like India and China boosting production of the dirtiest fossil fuel to stave-off power shortages. Russia’s invasion of Ukraine exacerbated tightness in global fuel markets, triggering blackouts in some of the region’s poorest countries that could no longer afford pricey gas imports.
“It’s important for Asian nations to have as many energy options as possible in order to have security of supply, and move realistic energy transition forward,” Prime Minister Fumio Kishida said earlier this month at a meeting of the Asia Zero Emission Community, which includes Vietnam, Australia and Indonesia.
Japan’s government has urged its gas importers to continue investing in overseas supply and emphasised the potential role of technologies like carbon capture and storage to help limit emissions.
The draft communique, which is dated Feb 22, has since been the subject of debate, and is expected to be revised ahead of Apr 15-16 talks in Sapporo. National leaders meet for a G7 summit in Hiroshima in May. BLOOMBERG
Share with us your feedback on BT's products and services
