Kansai Electric Power and Marubeni have reportedly scrapped their plans for a 1.3GW coal-fired power plant in Japan.
Reuters reported that the plan had been dropped after it became difficult to assess project feasibility.
After Japan-based Electric Power Development dropped its plan to build a 1.2GW coal-fired power plant this month, a worldwide trend towards decarbonisation has gathered pace.
A Kansai Electric spokesman was quoted by Reuters as saying: “The decision reflected the Japanese government’s policy to advance decarbonisation and banks’ move to stop financing coal power projects.”
The spokesperson said that the two companies have instead made plans for a biomass power plant in the northern region of Akita.
In a separate development, Mitsubishi UFJ Financial Group announced that it would stop financing the expansion of existing coal-fired power plants.
Exceptions were limited to plants equipped with carbon capture, utilisation and storage (CCUS) capacities, mixed combustion and other technologies needed to achieve the carbon reduction targets set out in the Paris Agreement.
In another development, the European Bank for Reconstruction and Development (EBRD) and the Japan International Cooperation Agency (JICA) have unveiled plans to invest in sustainable energy and infrastructure.
The two organisations have also agreed to invest in sectors identified in the United Nations’ 2030 Sustainable Development Goals.
EBRD vice-president Alain Pilloux said: “Today’s agreement will help us strengthen and grow our long-term engagement and strong complementarity with JICA.
“It opens new co-financing opportunities in the areas of sustainable energy, green economy, infrastructure, financial inclusion, small and medium-sized enterprise (SME) support and many other areas.”
The agreement aims to support economic and social development in the Caucasus, Central Asia, Europe and North Africa.