Japan’s MUFG to stop financing upgrades of coal-fired power plants

Economy Environment

FILE PHOTO: A man walks past a signboard of Mitsubishi UFJ Financial Group and MUFG Bank at its headquarters in Tokyo, Japan April 3, 2018. REUTERS/Toru Hanai/File Photo
FILE PHOTO: A man walks past a signboard of Mitsubishi UFJ Financial Group and MUFG Bank at its headquarters in Tokyo, Japan April 3, 2018. REUTERS/Toru Hanai/File Photo

TOKYO (Reuters) - Mitsubishi UFJ Financial Group Inc will stop financing upgrades of existing coal-fired power plants, Japan’s biggest lender said on Monday, amid increasing pressure on Japanese lenders to cut funding for coal power.

The decision comes as governments and companies in the globe move towards decarbonisation, and after Japanese Prime Minister Yoshihide Suga announced last week that the country aims to nearly double its target for cutting carbon emissions.

The new policy will take effect on June 1, MUFG said in a statement.

(Reporting by Takashi Umekawa; Editing by Ritsuko Ando)

Reuters