Despite making a commitment to stop all for financing for fossil gas at the G7 conference in 2022, Japan is one of the biggest open financiers of gas and oil production in the world. According to a report from the South Korea-based Solutions for Our Climate ( SFOC), Japanese public financial institutions invested$ 93 billion ( €82 billion ) in oil and gas projects between 2013 and 2024. This funding came from projects for developing liquefied natural gas ( LNG ) projects in other countries, totaling$ 56 billion. According to the record,$ 24 billion was reportedly allocated to clean energy projects during the same time frame. According to Walter James, a personal consultant with an emphasis on Japan’s climate and energy policies,” Japan has enormous effect in power financing, and particularly fossil fuel leasing.” The” Japanese model” of LNG investment, which the Institute for Energy Economics and Financial Analysis ( IEEFA ), a US-based research center calls” the Japanese model” of LNG investment, has Japan become the main driver of LNG development in the Asia Pacific. It is actually across the fossil fuel supply chain, from exploration, production, transportation, to actual use and power plants. In a statement from the IEEFA, Japan gains in two ways: by having more exposure to the LNG offer for its domestic energy requirements and by having better access to “demand centers where Japan can purchase income LNG.” According to the IEEFA report,” Japan’s LNG resales to international markets have reached record highs, indicating a change in its function within the global LNG business” from a client to an supplier. According to another IEEFA report, Australia’s LNG is the main source of supply for Asian Gas shipments to second nations. Japan has little exposure to fossil fuels domestically, and is dependent on energy exports to fuel its economy. More than 83 % of Japan’s major energy combination comes from fuel, LNG, and fuel, according to statistics from the Asia Natural Gas and Energy Association. Chinese “greenwashing” with LNG A total of 70 Memorandums of Understanding ( MOUs ) were signed with 11 countries in August 2024, including Australia, Brunei, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Many of the projects, but, concentrate on developing systems for carbon get, ammonia, and natural gas. LNG is regarded by Japan’s companion nations as” intermediate energy” in AZEC. However, according to a study from Cornell University in 2024, LNG generates 33 % more emissions than coal when both processing and delivery are taken into account. Hiroki Osaka, a campaigner for growth fund and culture at Friends of the Earth Japan, claims that the gap in Japan’s G7 commitment allows for purchase in LNG tasks despite the fact that it contributes to greenhouse gas emissions. According to Oxada, Tokyo’s pledge is based on “unabated fossil projects,” which means they can continue if other nations decide the projects are “abated” like those made possible by CCS. Utilizing fossil fuels without taking any steps to reduce greenhouse gas emissions, such as CCS, is referred to as” Unabated.” On the other hand, abandoned fossil fuels employ steps to lower emissions. Osada told DW that “it’s a form of greenwashing.” Another flaw is that even if projects are viewed as “unabated,” they are justified if they claim to align with the 1.5-degree energy plan [Paris Agreement] or are necessary for energy security and diplomacy. Osada claims that Japan “aided in writing” Indonesia’s long-term energy plan so that there would be a need for gas. While LNG is too expensive and they can’t import if there is a blackout, she said,” There is a lot of renewable potential available and it’s actually cheaper and more beneficial for the whole of Southeast Asia.” According to calculations from the Institute for Essential Services Reform, an Indonesian research center for energy and environment policy, natural gas costs more than renewables in Indonesia. Indonesia exports more than 40 % of its energy, making up over 40 % of the world’s total. Indonesia launched a$ 1.5 billion LNG distribution project to feed power plants in March in order to phase out coal and oil. Wicaksono Gitawon, policy strategist at the Indonesian NGO CERAH, however, claimed that increased overseas investment in LNG would hinder Indonesia’s transition to renewable energy. ” I genuinely believe that Japan should instead advocate for renewable energy,” Gitawon said. ” Our coal infrastructure is already shackled together. It would be another lock-in because they are now urging for gas, which is a large investment. I don’t believe we would be able to transition to an energy-related economy if Indonesia had gas infrastructure. All the things Japan would love to sell and invest in include things like coal fired with ammonia and hydrogen, as well as natural gas and LNG, and other energy transition strategies, he said. This September, Malaysia is expected to host the third AZEC meeting.
