◼ BLOOMBERG OPINION August 3, 2020
and wind technology—in which it’s a world leader—instead.
Neither country should think it has the luxury of time.
The next global climate summit has been postponed until
November 2021. Around then, Beijing is expected to set a
new domestic target for coal-fired capacity. If China and
Japanwantothernationstocommittomoreambitiousgoals
forreducingemissions,theyneedtodemonstratetheirown
seriousness. Both aspire to greater roles in global governance.
They shouldn’t discount the damage continued support for
coal will do to their credibility and influence.
Those considerations ought to be compelling by them-
selves, but here’s another: Former Vice President Joe Biden
has pledged, if elected in November, to impose carbon tariffs
on nations that don’t meet their climate obligations. Global
carbon pricing might be on the way. A source of energy that’s
already unduly costly is only going to get more expensive. <BW>
For more commentary, go to bloomberg.com/opinionFewnationscansparea thoughtforanythingrightnow
exceptbattlingCovid-19andmitigatingitseconomicfallout.
Butit’sessentialthattheirrescueeffortsdon’taddtoaneven
biggerglobaldanger:climatechange.Thegovernmentsof
ChinaandJapan,especially,needtokeepthisinmind.By
continuingtofundnewcoalprojectsathomeandabroad,
Asia’stwolargesteconomiesthreatentodoomanychanceof
limitingglobalwarmingto1.5C.
Chineseauthorities,lookingtorevivetheirbatteredecon-
omyandincreaseenergysecurity,approvedmorecoal
capacityinthefirstsixmonthsofthisyearthanin 2018
and 2019 combined.Anadditional 40 gigawattsofcoalplants
havebeenproposed,almostasmuchasSouthAfrica’sentire
fleet.Meanwhile,Chinacontinuestofinancea quarterofcoal-
firedcapacityunderconstructionaroundtheworld.
Japan,thenext-biggestfinancialprovider,recentlypledged
tosupportonlythemostefficientcoal-burningtechnologies
athomeandoverseas.Suchplantsareandwillcontinueto
behighlypolluting.And,thoughcoalopponentssuchas
EnvironmentMinisterShinjiroKoizumisaythisisa sharp
changeinpolicy,morepowerfulministriesarethoughttostill
favornewprojects.Fromnowon,countriesgettinghelpwill
havetopresentlong-termplansforloweremissions,butwhat
differencethatwillmake,if any,is unclear.
PolicymakersinBeijingandTokyomightarguethatthis
is notimeforidealism.TheChineseeconomyshrank1.6%
inthefirsthalfofthisyear,andtheInternationalMonetary
FundprojectsJapan’soutputwillfall5.8%in2020.Officials
inBeijinghavebeenstrivingtopromotecleanerformsof
energy,butlocalauthoritiesseecoalplantsasaneasysource
ofstimulus,jobs,anddemandfordomesticcoal.Japanargues
it can’taffordtoeliminatecoalbecauseoffierceresistanceto
restarting nuclear plants after the Fukushima Daiichi disaster.
Both countries are being shortsighted. Given the rapidly
falling cost of renewables, coal projects no longer make finan-
cial sense. Already, more than half of China’s are estimated to
operate at a loss. Some of the countries receiving financing
from China and Japan can ill afford the projects they have on
the books, let alone the future losses the plants could impose.
That’s leaving aside the economic costs of unabated climate
change. China and Japan are acutely vulnerable to those risks.
The Covid-19 crisis offers a chance to reverse course. Given
low fuel prices and reduced demand, governments around
the world have a window to cut fossil fuel subsidies, freeing
up money for pandemic aid. Rather than offering other coun-
tries debt relief on financially unsustainable coal projects,
China could cancel them outright and offer help with solarJapan and China Should
Stop Promoting Coal
Around the World
BP reports second-quarter earnings on Aug. 4. Under
new CEO Bernard Looney, the oil giant has taken
massive writedowns on the value of its business to
prepare for the transition to a low-carbon world.▶ Does Big Oil Have a Future?
◼ AGENDA
▶ HSBC unveils its
second-quarter earnings
on Aug. 3. The bank
has already announced
35,000 job reductions,
but it may need to cut
deeper to manage a
turnaround.▶ New Zealand reports
jobless numbers for
the second quarter on
Aug. 5. The country
was among the first to
declare victory over the
coronavirus outbreak
after a strict lockdown.▶ Want to look sharp
back at the office? Pick
up a watch at Bonhams
in London on Aug. 5.
Timepieces being
auctioned include a
Patek Philippe valued at
more than $200,000.▶ The Bank of England
sets its interest rates on
Aug. 6. It’s already cut
borrowing costs to 0.1%
and added £300 billion
($390 million) to its
asset purchase program
to support the economy.▶ The judge overseeing
Bayer’s Roundup cancer
settlement called parties
into court on Aug. 6 for
a hearing to discuss the
status of the complex
$10.9 billion agreement
reached in late June.▶ Aug. 6 in Japan is
Hiroshima Day, marking
the day in 1945 that
the U.S. used the first
of two atomic bombs
against the country. The
second fell on Nagasaki
three days later.6
ILLUSTRATION BY LAUREN MARTIN