Japan will stop providing yen loans for the construction of coal-fired power plants in Indonesia and Bangladesh, the government announced on Wednesday.
The policy reversal regarding the construction of the Indramayu plant in Indonesia and the Matarbari plant in Bangladesh came in response to international criticism over coal power, a major source of greenhouse gas emissions. greenhouse accused of global warming.
The Group of Seven countries agreed in 2021 to end new forms of aid by the end of the year for coal-fired power plants that do not take action to reduce emissions.
But Japan had maintained the factories were exempt as an “ongoing case”, prompting environmental groups to accuse the country of breaking the G-7 pledge.
The G-7 includes Britain, Canada, France, Germany, Italy, Japan and the United States, plus the European Union.
Indonesia and Bangladesh were carrying out investigations for the projects with Japanese support, but neither case advanced to construction.
“We have decided that we cannot pursue these cases as subjects for yen loans,” Foreign Ministry press secretary Hikariko Ono told a news conference.