Sumitomo Mitsui Financial Group Inc. said Wednesday it will tighten its policy on financing coal-fired power plants that emit large amounts of carbon dioxide, halting new lending without exception from next month.

In line with global efforts to reduce greenhouse gas emissions, SMFG has in principle stopped providing loans for newly constructed coal-fired plants but kept lending in some facilities.

In an updated funding policy effective June 1, the group will remove the exceptions and halt financing of projects to expand existing coal facilities or adopt high-efficient, low-emission technologies.

Mitsubishi UFJ Financial Group Inc. said last month it will halt funding of existing coal-fired power plants from June. MUFG had already stopped new coal project financing in 2019.

SMFG has set a policy of increasing the total amount of its loans to 30 trillion yen ($276 billion) for environmentally friendly projects between fiscal 2020 and fiscal 2029 ending March 2030. The group also pledged to achieve net zero carbon emissions in 2030.

Japan's high reliance on fossil fuels and its support for new coal power projects in developing countries have drawn international criticism, as other developed nations such as Britain and France plan to scrap coal-fired power plants.

==Kyodo

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