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TOKYO, Feb 5(Reuters) - Japanese trading houses are speeding up their efforts to shift away from coal and other fossil fuel assets amid a growing decarbonisation push worldwide and to match an ambitious pledge by government of becoming a carbon neutral by 2050.
The move comes as the trading houses are re-thinking their long-term strategies around upstream investment, Wood Mackenzie Asia Pacific Vice Chair Gavin Thompson, said in a recent note.
“If 2020 was a year for the re-evaluation of future plans, then 2021 looks to be the year of implementation,” he said.
For example, Itochu said on Thursday it will offload its stake in a Colombian coal mine, shedding 80% of its thermal coal assets, and will sell the remaining stake in two Australian mines “as soon as possible.”
Decarbonisation key to future of Asia Pacific’s upstream industry
Wood Mackenzie’s Asia Pacific upstream 2021 outlook report shows that the development of regional decarbonisation roadmaps is crucial to the future of the upstream industry.
Rising quickly to the top of corporate agendas in 2020 was the topic of carbon. As decarbonisation and talks of a “green recovery” intensify, operators are closely examining the carbon content of their assets. This is particularly important for Asia Pacific, where many sour gas and high carbon dioxide fields sit in portfolios – and on balance sheets – as potential commercial investments.
Wood Mackenzie research associate Saloni Kapoor said: “Each company must now chart its course down the yellow brick road to carbon neutrality. It will be fraught with obstacles, particularly in Asia Pacific due to its ever-expanding energy requirements.”