January 29 (Wed), 2025: New Market Forces analysis finds that Japan’s seven largest trading companies and JERA, Japan’s largest power company, are planning eight Giga Watts (GW) of gas-fired power generation projects across Asia, undermining the transition to clean energy and the climate commitments of Japan and Asian countries more broadly, and likely hurting these companies’ bottom lines.
The analysis examining Japan’s seven major trading companies, Itochu, Mitsubishi Corporation, Mitsui & Co., Marubeni Corporation, Sojitz Corporation, Sumitomo Corporation, and Toyota Tsusho Corporation as well as JERA finds their proposed gas power projects of eight GW would generate carbon pollution equal to more than half of Japan’s annual emissions in 2022.
The research by independent clean energy finance advocacy organisation Market Forces reveals that the eight companies’ renewable buildout is inadequate. For example, in South and Southeast Asia, these companies are planning to develop nearly nine times more gas power capacity than solar and wind.
The report finds these companies are not doing much better domestically. The eight companies’ existing and planned solar and wind projects make up just 5 per cent of Japan’s 2030 target for solar and wind power, despite their central position in energy and power production.
The full report is available here.
Dr. Sachiko Suzuki, an Analyst of Market Forces said,
“It’s unacceptable corporate behaviour that the eight big Japanese companies are creating new demand by treating South and Southeast Asia as a dumping ground for excess LNG while pushing polluting and costly gas power.
“Globally, the eight companies plan more solar and wind investment than gas power.
“The Japanese Trading Houses and JERA have the ability to deliver a clean and secure renewable energy transition and have a duty to meet global climate goals by doing the same in South and Southeast Asia.”
Analysis key findings;
- Six of the eight focus companies are exposed to stranded asset risk, by planning to expand gas infrastructure, despite the World Energy Outlook 2024 by International Energy Agency (IEA) for instance, making clear the world has enough gas capacity under all three scenarios up until 2040, and gas plant capacity utilisation rates are projected to decline under all three of the IEA’s scenarios 2030 onwards.”
- Ninety-six per cent of the planned 8 GW of gas power generation capacity is concentrated in Asia. In South and Southeast Asia, these companies plan to build 8.6 times more gas power than solar and wind combined, locking these regions into energy import dependence rather than facilitating a rapid, secure renewable energy transition.
- JERA is the largest gas power expander, planning 3.4 GW of new capacity. This is 612 MW more than JERA’s planned new solar and wind power capacity. Sojitz plans the biggest increase compared to its existing gas power capacity with an 83 per cent expansion. Marubeni is the frontrunner in new solar and wind power, with 4.2 GW in development.
- These companies do not have policies and targets to shift from their reliance on gas. The findings confirm investors must ensure these companies rapidly transition to renewables-focused business plans to mitigate risk, remain competitive in a rapidly decarbonising world and align with global climate goals.
The new analysis coincides with a visit to Japan by delegates from United States, Gulf of Mexico communities to meet government and company officials. The US are testifying that they are detrimentally affected by gas development backed by the Japanese trading houses.
As the climate and energy crises worsen, and energy security is becoming clearer, civil society and communities are voicing strong concerns about the pollution and health damage caused by the gas industry even from Japan’s diplomatic allies.
We urge Japanese trading houses to lead the energy transition, rather than neglecting voices from international community.
For media inquiries and interviews contact:
Koh Matsuki, +81 80-4395-8529, [email protected]
Antony Balmain, +61-423-253-477 [email protected]