Business Day

Coal still king for Japan

- JACOB GRONHOLT-PEDERSEN and MEEYOUNG CHO Seoul/Tokyo

DAYS after signing the global climate deal, Japan and South Korea are pressing ahead with plans for new coal-fired power plants, casting doubt on their commitment to cut carbon emissions.

LESS than a week since signing the global climate deal in Paris, Japan and South Korea are pressing ahead with plans to open scores of new coalfired power plants, casting doubt on the strength of their commitment to cutting carbon dioxide emissions.

Even as many of the world’s rich nations seek to phase out the use of coal, Asia’s two most developed economies are burning more than ever and plan to add at least 60 new coal-fired power plants in the next 10 years. Officials at both countries’ energy ministries said those plans were unchanged.

Japan, in particular, has been criticised for its lack of ambition — its 18% target for emissions cuts from 1990 to 2030 is less than half of Europe’s — and questions have been raised about its ability to deliver, since the target relies on atomic energy, which is very unpopular after the 2011 disaster at the Fukushima nuclear plant.

“It will not be easy to change the dynamic for domestic coal use, but I think Japan cannot continue ignoring this,” said Kimiko Hirata, internatio­nal director at Kiko Network, a Japanese NGO that lobbies for measures to combat climate change. Eventually, Japanese businesses will start recognisin­g the meaning of emissions neutrality and the rapid shift to renewables in other countries and start responding,” said Ms Hirata, who was at the Paris talks.

Analysts say Japan and South Korea could reduce emissions by much more than they pledged.

“The focus in Asia has been more on China and India, so we haven’t seen much attempt to put pressure on Japan and South Korea yet. But I imagine pressure will start to increase,” said senior analyst Georgina Hayden at BMI Research, a unit of ratings agency Fitch.

South Korea did scrap plans for four coal-fired power plants as part of its Paris pledge, but 20 new plants are still planned by 2021.

In Japan, 41 new coal-fired power plants are planned over the next decade, and taxes favour coal imports over cleaner-burning natural gas.

In South Korea, tax on imported coal for power generation was raised in July, but is still only just over a third of the import tax on natural gas.

Coal-fired power plants there currently run at about 80% of capacity, compared with 35%-40% for gas plants, according to calculatio­ns based on data from Korea Electric Power, the country’s largest electricit­y utility.

Asked if the Paris agreement could lead the Korean government to reduce the planned number of coalfired plants, an energy ministry spokesman declined to comment, but a ministry official said on condition of anonymity that there was no change in the offing.

Japan’s environmen­t ministry also declined to comment, but an official said anonymousl­y that the Paris deal would have no effect on the ministry’s assessment­s of coal plants.

Japan’s Electric Power Developmen­t, the country’s top thermal coal user, said the Paris deal would have no effect on its coal plans.

“Our stance on new coal plants is unchanged,” a spokesman said, adding that emissions would be cut as ageing coal plants were replaced by ones using the latest technology.

Mutsuyoshi Nishimura, a former climate negotiator for Japan, said Japanese industry and the government had been caught napping by the Paris agreement and were “awfully reluctant to visualise the coming of the ‘non-fossil world’”.

“They were too caught up in the belief that industrial­isation and economic growth would entail such huge carbon dioxide emissions in developing countries that China, India, etcetera would oppose any notion of decarbonis­ation,” he said.

To be sure, China uses vastly more coal and has nearly 1,000 more such plants in various stages of planning and constructi­on. But it also recently reformed its gas price system to encourage a switch away from coal.

“We haven’t seen that kind of commitment from Japan or South Korea yet,” said BMI’s Ms Hayden.

It will not be easy to change the dynamic for … coal use, but I think Japan cannot continue ignoring this

 ?? File picture: Bloomberg ?? SMOG: Japan, home to this Kamisu City chemical plant, and South Korea are pursuing plans for new coal-fired power plants, despite their Paris pledges.
File picture: Bloomberg SMOG: Japan, home to this Kamisu City chemical plant, and South Korea are pursuing plans for new coal-fired power plants, despite their Paris pledges.

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