U.S. climate activists urge Japan to end financing harming LNG projects

Earlier this month, a delegation from the U.S. Gulf Coast has traveled to Japan for the first time to appeal to Japanese financial institutions to end their support for liquefied natural gas (LNG) projects that are harming the environment, public health, local culture, and endangered wildlife.

The delegation, which includes Juan Mancias of the Carrizo Comecrudo Tribe of Texas, Bekah Hinojosa from the South Texas Environmental Justice Network, and Dina Nuñez of the South Texas Human Rights Center, is accompanied by the environmental NGO Rainforest Action Network (RAN). Their focus is on pressuring major financial institutions like Mitsubishi UFJ Financial Group (MUFG) to halt funding for projects such as the Rio Grande LNG export terminal, Texas LNG export terminal, and the Rio Bravo Pipeline.

The activists argue that these projects are destructive, endangering indigenous lands and contributing to climate change. Juan Mancias has expressed that these LNG developments are polluting ancestral lands and defiling the legacy of his people. “They want to take our lands for the profits of fossil fuel companies, but we will not allow them to destroy us,” Mancias stated.

The banks in question, MUFG, Mizuho Financial Group, and SMBC Group, are among the world’s leading financiers of LNG projects. According to the “Banking on Climate Chaos” report, these Japanese financial giants ranked in the top ten for funding LNG expansion in 2023 and cumulatively since the Paris Agreement. The report revealed that banks provided over $700 billion in financing to fossil fuel companies in 2023, with more than $120 billion directed specifically to LNG project.

Meanwhile, European banks, such as the Netherlands’ ING and France’s La Banque Postale, have made commitments to halt financing for LNG and other fossil fuels. By contrast, Japanese banks have been slower to adopt policies that phase out support for high-emission projects.

Activist Bekah Hinojosa highlighted the risks posed by these projects, particularly for low-income communities and wildlife. Despite local victories in court, such as the successful appeal against the Rio Grande LNG project, construction is still ongoing due to legal loopholes. “Japanese companies need to stop funding these projects to prevent further harm,” Hinojosa insisted.

Dina Nuñez spoke about recent successes in halting LNG permits, emphasizing the importance of strong community action. She appealed to Japanese financiers, stating, “We have seen victories in fighting back against these massive projects, and now we are asking Japan to make the right choice and end financial support for harmful extraction industries.”

Japan has positioned itself as the world’s largest public financier of LNG export projects, accounting for nearly 50% of international public financing for LNG terminals built or planned between 2012 and 2026. The delegation’s visit aims to change this trajectory, urging Japan to join other nations in divesting from fossil fuels and supporting a transition to cleaner energy.