“Tokyo’s push for fossil fuels hinders energy transition in the Philippines and Bangladesh”
Japan is among the world’s largest funders of fossil fuel projects and is keen on expanding its vast network of energy plants alongside its maze of pipelines that crisscross Asia and the world.
From 2020 to 2022 it funded around $6.9 billion on average each year in coal, gas, and oil projects around the world. In particular, Japan is among the world’s largest buyers of Liquified Natural Gas and is aggressively developing alternative fuels to power their fossil fuel plants like hydrogen and ammonia.
Domestic demand for Japanese gas has been declining in recent years, so therefore, the government and utility companies set out to dump their excess gas on other countries.
Japan led the formation of the Asia Zero Emission Commission, with members from Southeast Asia and Australia.
This regional alliance presents a facade of promoting net zero technologies and permits harmful energy sources.
A recent look at MOUs signed under AZEC reveals that a third of the agreement contain fossil fuels or technologies that will extend the lifespan of fossil fuels.
Japan’s recent push to finance gas projects over renewable options is not only locking countries into fossil fuel dependency but is also derailing Asia’s shift to renewable energy.
Nowhere is this more evident than in the Philippines and Bangladesh, two nations ripe with renewable potential yet heavily reliant on fossil fuels.
With the Philippines’ only native gas field, Malampaya, set to be depleted by 2027, the Philippine government has set its sights on building and operating new LNG import terminals to welcome an influx of foreign gas, which is welcome news for the Japanese.
The close entanglement between Japanese and Philippine business elites plays a critical role in enabling the dirty Japanese agenda to play out on Philippine shores.
This was evident in 2021 when JERA, one of Japan’s largest power utility companies, bought a sizable chunk of shares from a local energy giant, Aboitiz, which owns a fleet of fossil fuel plants themselves.
Japan’s tight grip in the Philippines can be clearly seen through the network of pipelines, terminals, and power plants it has set up across the islands. The Japanese fossil gas distribution corporation Tokyo Gas partly invested in the Batangas LNG import terminal of Philippine power plant developer First Gen, supplying gas to First Gen’s four existing LNG power plants in the area.
This investment has displaced fishers from their source of livelihood and increased cases of respiratory diseases in the communities living near the plants.
The Philippines does not need to continue relying on this type of dirty energy. It has massive solar and offshore wind potential, around 178GW and 122GW respectively, that stands to provide a cleaner, cheaper and more sustainable energy source.
Similarly, Bangladesh’s coastal areas boast of strong wind potential.
A 2023 study indicates that the country has a solar energy potential reaching 50.17GW, possibly supplying 80 per cent of the total electricity demand by 2041.
Bangladesh could build a robust clean energy sector if investments aligned with these opportunities.
For Bangladesh, Japan is financing projects that perpetuate pollution and increase reliance on imported fuel, slowing progress on renewables. Its loans and grants for LNG projects and gas-fired power plants have positioned Japan as one of the primary backers of Bangladesh’s fossil fuel infrastructure.
Japan could play a transformative role in supporting Asia’s energy transition.
Known globally for its technological advancements, Japan could channel its expertise and resources into helping countries like Bangladesh and the Philippines to build renewable energy systems.
Unfortunately, Japan’s current approach places short-term gains over long-term sustainability, prioritizing gas infrastructure over clean energy investments.
Japan’s investments in gas are more than just an energy strategy—they represent a choice between fostering climate resilience or perpetuating fossil fuel dependency. For countries like Bangladesh and the Philippines, which are especially vulnerable to climate impacts, this choice is more than strategic; it’s a question of survival.
(Lidy Nacpil is the coordinator of the Asian Peoples’ Movement on Debt and Development based in Manila. Sharif Jamil is the coordinator of Waterkeepers Bangladesh based in Dhaka.)