Japan's J

Mar 21, 2023

TOKYO, May 10 (Reuters) - Japanese power generator Electric Power Development Co Ltd (J-Power) (9513.T) on Wednesday raised its 2030 emission reduction target by 1.3 million tonnes from 2013 levels as it tries to step up its efforts to tackle climate change.

The move comes after two major European asset managers filed a shareholder resolution at J-Power, calling on Japan's largest coal-fired power generator to set and disclose credible short and medium-term emissions reduction targets, aligned with the goals of the Paris Agreement.

J-Power President Toshifumi Watanabe said the revision was not in response to the resolution.

"We have been considering deepening emission targets regardless of the shareholder's proposal," he said.

J-Power now aims to cut its CO2 emissions by 46% by 2030 from 2013 levels of 48.77 million tonnes, against an earlier target of 44%. The latest goal is in line with Japan's national target.

"We've decided on the number with some degree of preparedness," Watanabe said, noting the company panned to expand use of ammonia and biomass at its thermal power stations.

Japanese power generators are trying to co-fire low-carbon ammonia with coal at their thermal power plants to slash CO2 emissions.

J-Power will disclose its response to the resolution after the board of directors discusses the issue, Watanabe said.

"We are taking CO2 reduction measures one by one while supplying stable electricity on a daily basis and we'd like our shareholders to understand the efforts," he said.

J-Power reported a record net profit of 113.7 billion yen ($842 million) for the year ended in March, up 63% from a year earlier, backed by a strong gain at its Australian coal unit amid soaring prices of thermal coal.

But for the year to next March, it predicted a 33% decline in profit as it expects Australian coal prices to fall to $200 a tonne in 2023, from an average prices of $360 in 2022.

($1 = 135.0500 yen)

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