A coalition of NGOs posing in front of Mizuho Financial Group’s shareholder meeting in June to present the bank with the “2017 Irresponsible Bank Japan Award” to highlight its investments in dangerous fossil fuels, deforestation, and nuclear power and failure adopt comprehensive due diligence policies to safeguard against these risks.
12 December 2017 will mark the second anniversary of the Paris Agreement.
The Paris Agreement, an agreement that commits 195 nations to make greater efforts to mitigate climate change, is a beacon of hope. In the two years since it was concluded, the global movement towards decarbonization has accelerated. Unfortunately, progress has not been rapid enough to avoid potentially catastrophic consequences for humanity.
The most recent “Emissions Gap” report by the United Nations Environment Program (UNEP) indicates that the world is currently on track for at least three degrees of warming. This level of temperature rise will flood major cities around the world and cause climate-induced migration on a massive scale.
Fully achieving the Paris climate goal of keeping global warming below 1.5-2 degrees above the pre-industrial average means nothing other than zero new fossil fuel infrastructure, the prompt phase out of existing coal power and other fossil fuels, and a rapid transition to a 100% renewable energy future.
Japan’s current policy of increasing coal fired power generation both domestically and overseas shows how Japan is ignoring the science and jeopardizing our collective future for short-term gain.
The responsibility falls on all of us to tackle this joint challenge. Solving the climate crisis will require bold action not only from national governments and energy companies, but also the leadership of cities, local administrations, businesses, schools, civil society organisations and individuals.
The financial community bears a special responsibility as international capital will play a central role in financing the great transition that the crisis demands.
Ahead of the Macron Climate Summit in Paris next week, a group of international economists and academics released the “Declaration on Climate Finance” calling for “an immediate end to investments in new fossil fuel production and infrastructure”, and “a dramatic increase in investments in renewable energy.”
In a promising trend, insurance companies and asset owners have announced divestitures of their fossil fuel assets, particularly coal, and many financial institutions are starting to restrict financing for the most destructive fossil fuel developments including tar sands and shale gas. Japanese public and private sector financial institutions are lagging behind however by continuing massive financing into fossil fuels and nuclear energy in spite of the renewable energy revolution.
Japan’s financial community is standing at the crossroads. On one hand it can act in the interests of long-term economic health and stability by investing in renewable energy solutions, or continue down the path of stranded assets and missed opportunities.
On the day of the Macron Climate Summit on 12 December, local deposit holders and concerned groups will announce their divestment from major banks funding fossil fuels and nuclear energy, to encourage Japan’s financial institutions to commit to responsible lending and investment policies in line with the Paris Agreement.
We hope that Japan’s banks will play a leading role in the great transition by financing the shift away from an economy dependent on foreign fossil fuels to one that is driven by the renewable energy sources we have been blessed with--sun, wind, waves, water, geothermal.
To avoid the most severe effects of climate change and safeguard a liveable planet for all, Japanese citizens can start by shifting our mindsets and shifting our money towards funding the solutions.