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NGOs hail Nippon Life for dropping coal finance

IANS  |  New Delhi 

With Japan's Nippon Life Company purporting to restrict new for coal plant projects regardless of their location, a group of environmental NGOs and experts on Saturday hailed the decision, saying it was aimed to strengthen commitment to the Agreement to limit to 1.5 degrees Celsius.

"The news that Nippon Life Company decided it will cease for new coal-fired power plants is the most progressive policy among Japanese financial institutions as it purports to restrict new for coal plant projects regardless of their location," a statement by the NGOs said.

The NGOs comprise the Center for a Sustainable and Society, Japan, Kiko Network, 350.org Japan, and

Nippon Life Company's decision comes as unprecedented and significant with the company being the biggest life insurer by revenue in

"We applaud Nippon Company for adopting this blanket restriction on finance for new coal plant projects. At the same time, we urge the company to catch up with its global insurance industry peers, such as and Allianz, by moving to divest from companies dependent on coal power and

"Nippon Company's new policy should provide the benchmark for Japanese banks and to strengthen their commitment to the Agreement by ceasing new lending and investment in new coal fired power projects and companies involved in coal fired power expansion both domestically and overseas," the NGOs said in a statement issued in

Tim Buckley, Director of Energy Finance Studies, Institute for and Financial Analysis (IEEFA), said: "Japan is a key in the Asian coal fired power sector, alongside it is the largest and promoter of new coal power. This is a really important announcement that will put pressure on all other Japanese financiers."

"This follows the significant move by last week to cut thermal coal exposure and suggests global momentum is really finally starting to build in support of the Climate Agreement.

"This comes at a time when technology has driven a more than 50 per cent decline in in the last two years alone," Buckley added.

New Delhi-based Centre for Financial Accountability Executive Director said Nippon Corporation is setting the right kind of example by its decision to not fund any new coal power plants.

"We are seeing several insurance companies opting out from investing in coal projects. In May, company adopted a policy to not fund any new coal projects overseas. Indian insurance companies need to take a note of this. The of is one of the single largest investors in coal and it's time that LIC consider adopting a similar policy."

--IANS

vg/vm

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, July 14 2018. 17:38 IST
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