Japan to Allow More Coal-Fired Power to Cope With Energy Shock

Japan will allow expanded use of coal-fired power plants to boost security of supply amid an energy shock from the war in the Middle East. The move is likely to increase near-term demand for coal and support domestic utilities and coal exporters, while creating headwinds for Japan's renewable transition and ESG commitments.

Analysis

Japan will allow expanded use of coal-fired power plants to boost security of supply amid an energy shock from the war in the Middle East. The move is likely to increase near-term demand for coal and support domestic utilities and coal exporters, while creating headwinds for Japan's renewable transition and ESG commitments.