An open letter regarding an investment policy toward the Japan Bank for International Cooperation (JBIC) providing support for new fossil fuel projects was submitted to 33 JBIC bondholders
“An open letter regarding an investment policy toward the Japan Bank for International Cooperation (JBIC) providing support for new fossil fuel projects (PDF)” was submitted to 33 JBIC bondholders.
April 14, 2022
Dear JBIC bondholders,
An open letter regarding an investment policy toward the Japan Bank for International Cooperation (JBIC) providing support for new fossil fuel projects
Japan Center for a Sustainable Environment and Society (JACSES)
Kiko Network
Friends of the Earth Japan
350.org Japan
Mekong Watch
We, environmental NGOs have been requesting financial institutions, which underwrite and hold bonds of the Japan Bank for International Cooperation (JBIC), to engage with JBIC not to support new fossil fuel projects or to divest from JBIC bonds. We are sending this open letter to 33 financial institutions (see Table 1) that increased their holdings of JBIC bonds over the last one year.
Despite the climate crisis becoming more serious, JBIC announced that it has reached six loan agreements to provide finance for new fossil fuel projects over the last one year (February 2021 – February 2022) (see Table 2). The total amount of loan agreements was US$ 4,041 million.
The International Energy Agency (IEA) calls for an end to financing for new fossil fuel development projects from 2021 to achieve net-zero CO2 emissions by 2050 [1]. Therefore, JBIC’s decision to finance the fossil fuel projects over the last one year is not consistent with the goals of the Paris Agreement.
A survey showed that between February 2021 and February 2022, 27 financial institutions, including Government Pension Fund Global (Norway), Munich Re, Mutual Benefit Association for Tokyo Metropolitan Government Employees, Government Pension Investment Fund (GPIF), Allianz, State Street, UBS and Wells Fargo decreased or divested their holdings of JBIC bonds. On the other hand, the survey found that 33 financial institutions increased their holdings of JBIC bonds.
We would therefore like to request you, who increased holdings of JBIC bonds according to the survey, to respond to the following questions. We would appreciate it if you could send your responses to the contact person below by May 13. Please note that we will publish your responses on our website.
[Questions]
- The survey showed that your financial institution increased holdings of JBIC bonds over the last one year. Would you confirm that this is correct?
- Is JBIC’s stance – providing support for projects that are not consistent with the long-term goals of the Paris Agreement – aligned with your investment policy?
- Have you ever engaged with JBIC on supporting new fossil fuel projects? Or are you planning to engage with JBIC in the future?
Contact:
Japan Center for a Sustainable Environment and Society (JACSES)
Yuki Tanabe, Program Director
2F Akasakamisuzu Bldg., 1-4-10 Akasaka, Minato-ku, Tokyo, 107-0052 Japan
tanabe@jacses.org
