March 29, 2024
Joint Statement:
NGOs Strongly Condemn Decision by Japan Bank for International Cooperation(JBIC) and Citibank to finance two gas-fired power projects in Mexico
Japan Center for a Sustainable Environment and Society (JACSES)
Kiko Network
Friends of the Earth Japan
Mekong Watch
Oil Change International
On March 28, the Japan Bank for International Cooperation (hereinafter referred to as JBIC),
a Japanese public financial institution, announced that it has decided to provide project
financing of US $93 million and $167 million each to two natural gas-fired combined cycle
power projects located in San Luis Potosi and Salamanca, Mexico (*1-2). The projects are
co-financed with Citibank, N.A., Tokyo Branch (hereinafter referred to as Citibank). On March29, Nippon Export and Investment Insurance (hereinafter referred to as NEXI) alsoannounced that it has decided to provide insurance for the loans from the private financial
institution (*3). We, environmental NGOs, strongly condemn the decisions made by JBIC,
Citibank and NEXI to support the project. We urge the financers, JBIC and Citibank, theinsurer, NEXI, and the provider of the power plant technology, Mitsubishi Heavy Industries,Ltd. (MHI) to stop their involvement in these two projects.
These projects involve the construction of gas-fired combined cycle power plants in twoplaces by the project developer, the Comisión Federal de Electricidad (CFE). On November
2, 2023, JBIC placed two projects on the list of projects under consideration for financing,and NEXI also placed it on December 6, 2023 and started consideration for providing
insurance.
At the G7 Elmau Summit held in June 2022, the Japanese government committed “to end
new direct public support for the international unabated fossil fuel energy sector by the endof 2022, except in limited circumstances clearly defined by each country consistent with a
1.5°C warming limit and the goals of the Paris Agreement.” (*4) Therefore, in applying theexception clause to two projects, the energy policy of the recipient country, Mexico, must beconsistent with the 1.5 degree goal of the Paris Agreement.
And then in the press releases published by JBIC on the decisions to support two projects,
JBIC mentioned that “The government of Mexico announced a greenhouse gas (GHG)
emissions reduction target of 35% (compared to BaU) by 2030 under its Nationally
Determined Contributions (NDC), an action plan that addresses climate change under theParis Agreement, which aims to replace environmentally harmful thermal power generation
with highly efficient gas-fired generation.” However, Climate Analytics (*5) and ClimateAction Tracker (*6) reveal that Mexico’s NDC is not consistent with the 1.5 degree goal.
When we NGOs had a meeting with JBIC prior to their loan decisions, we could not get clear
explanations from JBIC as to the basis on how they judged the Mexican government’s NDC
to be consistent with the 1.5 degree goal. JBIC also decided to finance the Scarborough gas

field development project in Australia on March 26 (*7), and it is condemnable that JBIC
seems to lack awareness that we are already in the era of global boiling induced by the useof fossil fuels to date. For NEXI, which decided to provide insurance, we sent questions onDecember 7, 2023, asking about consistency with the G7 Elmau commitment, although they
have not given us any response. This clearly violates their own Guidelines on Environmentaland Social Considerations in Trade Insurance, which stipulates that effort should be made toensure accountability.
Moreover, an article published by Mexico Business News (*8) points out that the generation
cost of solar and wind power in Mexico is lower than gas-fired power generation, giving thema high cost advantage. Providing support for San Luis Potosi and Salamanca projects, which
are not based on cost advantaged renewable energy but are gas-fired power generation witha lower cost advantage in Mexico, is not consistent with the Japanese Government's
Infrastructure System Overseas Promotion Strategy 2025 that indicated maximum utilizationof renewable energy technology, either.
From the reasons above, we urge JBIC, Citibank, NEXI and Mitsubishi Heavy Industries,
Ltd. (MHI) to stop their involvement in two projects, which are highly likely to amount to aviolation of the G7 commitment.
Contact:
Japan Center for a Sustainable Environment and Society (JACSES)
Yuki Tanabe
tanabe@jacses.org
Marika Kita
kita@jacses.org
Note:*1: https://www.jbic.go.jp/en/information/press/press-2023/press_00215.html*2: https://www.jbic.go.jp/en/information/press/press-2023/press_00214.html*3: https://www.nexi.go.jp/en/topics/newsrelease/202403260298.html*4: https://www.mofa.go.jp/mofaj/files/100364051.pdf*5: https://1p5ndc-pathways.climateanalytics.org/countries/mexico/*6: https://climateactiontracker.org/countries/mexico/*7: https://jacses.org/en/414/*8:
https://www.woodmac.com/press-releases/solar-pv-to-overtake-onshore-wind-in-latin-america-from-2023/