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The Japanese Minister of the Environment has announced that he will oppose "in principle" any new project to build or expand coal-fired power plants, while new signs indicate a spectacular energy pivot of the main energy market. thermal coal export from Australia.
Guardian Australia announced in March that Japan had canceled a significant percentage of planned investments in the coal-fired electricity generation sector, while its investment vehicles were abandoning coal projects and were looking for support large-scale renewable energy projects in Asia.
Market badysts expect the price of thermal coal to remain dictated by China, whose recent restrictions on Australian exports have already tempered near-record prices and would likely continue to reduce its value.
A faster-than-expected transition in Japan's energy sector, which purchases 39% of thermal coal mined in Australia, would affect future volumes and viability of some new mines.
The resource sector believes that slower demand forecasts in North and East Asia will be offset by demand growth in parts of South and Southeast Asia.
However, the financing of new coal-fired projects in Asian developing countries is likely to come from investment instruments based in China, Japan and Korea, and will be closely linked to the domestic policies of these countries.
At the end of last week, three separate announcements added to the growing belief that a renewed and positive interest in the Paris objectives was emerging in Japan, among government and big business.
Japanese Environment Minister Yoshiaki Harada has announced a "political initiative" to oppose new power plants or coal plants, the national newspaper Asahi Shimbun reported.
The Minister of the Environment does not have the last word on new energy projects, but his opinion is considered a fundamental part of the planning process.
Kansai Electric Power, Japan 's largest electricity supplier, announced Friday the extension of its renewable energy portfolio to 6 GW by 2030, providing for capital expenditures of 5. billion USD for clean energy projects over the next two years.
On the same day, Japan's Marubeni Corporation, a leading developer of energy projects in Asian developing countries, announced its goal of doubling renewable energy revenues by 2023.
Marubeni announced last year that he was coming out of coal. Its divestment decision was followed by other Mitsui, Mitsubishi, Itochu and Sojitz conglomerates. Three coal projects have already been canceled in Japan this year.
Observers in Japan remain cautious as the country has plans for coal-fired power plants under construction, some of which have already been approved. Prime Minister Shinzo Abe said he wants to show global leadership in the fight against climate change ahead of the next G20 summit in Osaka in June.
The speed with which the Japanese government and the industry have changed orientation is important, according to market badysts. This is happening as global financial institutions are moving out of coal more and more. QBE, Australia's largest insurer, announced on Saturday that it would cease to insure its new thermal coal projects, including mining and power generation, as of July this year, and will not insure any thermal coal projects by 2030.
Australian coal miners may not feel the direct effects of these pivots for a decade or more, as the most recent announcements involve new projects or offer phased exit commitments.
Tim Buckley, director of studies on energy financing at the Institute of Economics and Financial Analysis, said the next decade would be crucial for those who depend most on coal thermal.
Buckley said the economy, mining communities and Australian workers would be more exposed if governments did not understand the changing sentiment of global financial markets, especially in Japan, and ignored the need to implement effective transition strategies.
"We have a decade to prepare, and this is the decade that is of paramount importance to building the industries of the future," Buckley said.
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