As part of a trade deal, US President Donald Trump’s administration announced that Japan will finance $36 billion worth of projects, including an Ohio natural gas-fired plant set to be the US’ largest, and an oil export facility in Texas.
The Ohio gas plant, to be operated by a subsidiary of Japan’s SoftBank Group, aims to cater to power-hungry data centres, while the Texas GulfLink deepwater crude oil export facility is expected to generate $30 billion in annual US crude exports.
US officials said that these projects would strengthen US global energy dominance, while Japan Prime Minister, Sanae Takaichi, said that it would lead to mutual economic security and growth.
But environmental compaigners have frowned at the development, with 350.org saying that Japan’s oil and gas investments in the US are unwise in a world that’s preparing to transition away from fossil fuels.
Masayoshi Iyoda, 350.org Japan Campaigner, said: “Pouring money into costly US fossil fuel projects makes no sense when the world is moving fast toward cleaner, more affordable energy. Prime Minister Takaichi is not demonstrating Japan’s economic strength, she is showing that Japan will follow Washington’s lead even at the planet’s expense. PM Takaichi must rethink the outdated assumption that fossil fuels equal growth. These investments lead to stranded assets, heat up the planet, and undermine the real economic growth Japan needs.
“Japan should instead build on its technological advantages and invest in renewable energy as its path to long-term economic growth and security. PM Takaichi has spoken about reducing Japan’s dependence on imported fossil fuels – financing US oil and gas projects sends the opposite message. It also risks betraying young people who voted for a better future, not one made worse by the climate crisis.”