[Statement] The Launch of US Fossil Fuel Financing by JBIC and 3 Mega Banks Breaks Two Promises: Adequate Environmental and Social Review, and International Commitments to Climate Action

Today (April 24, 2026), various newspapers reported that the Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI), and the three mega banks (MUFG, SMBC, and Mizuho) have consolidated their policy to provide approximately 250 billion yen to three projects, including an Ohio gas-fired power plant and a Texas crude oil export terminal. This is the 'first phase' of investment and financing in the US based on the Japan-US tariff negotiations.

FoE Japan and JACSES express deep concern by pointing out the following three issues.

1. Violation of Environmental and Social Considerations Guidelines

One of the most serious problems in this financing policy decision is that the environmental and social consideration guidelines of JBIC and NEXI have been effectively gutted.

On February 18, 2026, the day the project was announced, JBIC and NEXI began considering support for the Ohio gas-fired power plant even though the construction site had not been determined and no Environmental Impact Assessment (EIA) existed. Originally, JBIC's Environmental and Social Considerations Guidelines require the submission, disclosure, and review of an EIA before decision-making for projects that 'have the potential for significant adverse impacts on the environment,' such as gas-fired power plants. When FoE Japan and JACSES met with JBIC regarding this matter, the JBIC representative explained that this is an exceptional case and that the environmental review would be conducted at a later date, as there are no sufficient documents for review at this time. During consultations regarding guideline revisions, JBIC stated that exception clauses would not be applied to projects where an EIA is normally conducted prior to financing, so applying the exception clause to this project violates the guidelines.

Not applying the principle of a pre-decision EIA stipulated in the guidelines is a major issue. If a review is conducted after the financing decision is made and severe environmental and social impacts are found, actions such as immediate suspension of loan execution and pre-maturity repayment must be taken. However, major doubts remain as to whether a highly politicized project like this one can actually be stopped by a later environmental review. In the Diet Budget Committee on April 6, it was also pointed out that JBIC's scrutiny becomes lenient for government-led projects.

This kind of decision-making must not set a precedent for the future. In particular, a second phase of investment and financing packages has already been announced as a result of the tariff negotiations, creating a risk that Japanese public funds will continue to be invested without going through proper environmental and social consideration processes every time a new project is announced.

Along with the guidelines of JBIC and NEXI, this also violates the Equator Principles adopted by the three mega banks joining this financing: MUFG, Mizuho, and SMBC. The International Finance Corporation (IFC) 'Performance Standards on Environmental and Social Sustainability,' which the Equator Principles reference, explicitly demand the implementation of an EIA, disclosure of information and consultation with affected communities, and evaluation of greenhouse gas emissions. As long as the three mega banks have adopted the Equator Principles, they must implement proper environmental and social considerations just like JBIC and NEXI, and shelving this responsibility is unacceptable.

We strongly demand that JBIC and NEXI review their support policies until proper screenings based on their respective guidelines are completed, and that the three mega banks (MUFG, Mizuho, and SMBC) complete independent environmental and social due diligence based on the Equator Principles and IFC Performance Standards they have adopted. If loan and insurance contracts have already been concluded, we strongly demand the cancellation of the contracts or the withdrawal of the support decision.

2. Do Not Repeat Harm to Local Communities

The region where financing for the Texas crude oil export infrastructure is planned is also an area where fossil fuel projects long supported by JBIC and NEXI have already caused severe harm to local communities. Specifically, this project is located in Brazoria County, the same county as Freeport LNG, which was financed by JBIC (2.695 billion USD), MUFG Bank (2.590 billion USD), Mizuho Bank (2.188 billion USD), and SMBC (1.953 billion USD).

The Freeport LNG explosion that occurred on June 8, 2022, is an event that symbolizes the risks of fossil fuel projects involving Japanese public support. In this accident, which emitted as much as 3,400m³ of methane during the explosion, several people including children were injured by the blast, and the terminal subsequently suspended operations for 8 months.

Jeffrey Jacoby of the Texas Campaign for the Environment commented on Japanese fossil fuel financing, stating, 'Japan and JBIC investing billions of US dollars in global gas infrastructure is equivalent to investing in environmental racism, destruction of local fisheries, air and water pollution, economic inequality, and even devastating disasters caused by climate change across Texas, Louisiana, and the entire southern US Gulf Coast region. Japan committing to LNG is...'