The Government of Japan has announced that it will cease financing for new coal-fired power plants in Bangladesh and Indonesia, as the Group of Seven (G7) nations push to eradicate the usage of the fossil fuel.
As a result, Japan will no longer financially support the expansion of the Matarbari 2 project in Bangladesh and the Indramayu plant in Indonesia. In 2021, the G7 nations agreed to stop providing funding for coal-fired power stations that fail to take measures to offset their carbon emissions. Bangladesh said it will not proceed with the Matarbari 2 project and instead build an liquefied natural gas (LNG)-based plant. Meanwhile, Indonesia halted its Indramayu project, in line with its net zero target till 2050.