Japanese energy companies are using their network of Australian industry bodies and government connections to tip the balance of both countries’ energy and climate policies in their favour, to the detriment of the climate, according to a report.
Think tank InfluenceMap’s research, published Tuesday, noted Japanese companies, including Inpex, Jera, and Mitsubishi Corporation, have invested more than $50 billion in Australian LNG export projects, or 21% of the total investment value.
The research suggests that if these projects were to maximise their potential LNG output, they would produce some 290 million tonnes of CO2e per year.
At the same time, these companies are represented in six prominent Australian industry associations, including Australian Energy Producers, the Business Council of Australia, and the Minerals Council of Australia among others.
These groups in turn have provided policy submissions and engaged directly with policymakers.
Based on analysis of documents obtained through Freedom of Information requests, the research found Japanese companies involved in LNG projects have met privately with Australia ministers and officials at least 24 times since the Labor government came to power in 2022.
Industry associations have published over 350 pro-gas outputs since May 2022, the report said, pushing narratives that promote the role of new gas supply and LNG exports, as well as the potential competitive impacts of more stringent climate regulation.
In Australia, these narratives emphasise affordability and energy security, presenting gas as important for jobs, economic activity, and national interests, while in Japan, advocates question the feasibility or sufficiency of alternatives, such as renewable energy.
This allows LNG, often alongside CCS and e-fuels, to be falsely presented as compatible with climate goals in both markets, the report said.
“Japanese LNG investment and lobbying in Australia are not merely domestic issues; they risk locking in fossil fuel dependence across the Asia-Pacific,” said Jack Herring, Australia programme manager at InfluenceMap.
“By promoting gas as a ‘transition fuel,’ these companies are pushing a web of narratives that contradict IPCC-aligned pathways and delay the shift to genuinely clean energy.”
The cumulative result of these actions has meant that the narratives created by these actors has filtered into policymaker language in both Australia and Japan, the report found.
“Our focus is on ensuring we get to net zero without putting living standards at risk and jeopardising affordable, reliable energy,” Australian resources minister Madeleine King told an Australian Energy Producers Conference last year.
Japan’s ambassador to Australia Suzuki Kazukiro said in an interview in October that “exporting gas really helps reduce CO2 emissions”.
“Many people, not only in Australia, but globally should understand that,” he said.
Jusen Asuka, emeritus professor at Tohoku University, said the growing criticism from overseas NGOs about Japanese gas companies has largely been drowned out by the narrative promoted by the government and corporations that natural gas is indispensable for decarbonisation.
“As a result, many members of the public do not recognise that this narrative is misleading and constitutes greenwashing by the Japanese government and corporations.”
These narratives are reflected in both countries energy and climate policies as well.
Japan’s 7th Strategic Energy Plan maintains a significant position for gas within Japan’s future energy mix, thanks to sustained corporate lobbying, InfluenceMap said.
It noted the positions advanced by Mitsubishi, Tokyo Gas, and others are strongly aligned with the language adopted in the energy plan.
In Australia, the report pointed to the government’s Future Gas Strategy, Nature Positive Reforms, and reforms to the Safeguard Mechanism to highlight lobbying efforts had succeeded in garnering in support for ongoing LNG expansion and weaker constraints on new gas projects.
This included the successful lobbying against a need for a climate trigger, which would see projects in Australia assessed against their GHG emissions, in its reformed nature protection laws.
In a statement, Bill Townsend, Inpex senior vice president corporate, told Carbon Pulse his company is “actively working to support Indo-Pacific energy security, while helping the region to achieve net zero by 2050”.
“As operator of A$60-billion Ichthys LNG in northern Australia, we are pleased to support local employment and training, with social and economic benefits flowing to Australian communities,” he said.
“As a long-term investor (Japan’s largest investor in Australia), we strongly advocate for stable and predictable policy settings, including clear and streamlined approvals pathways, with reduced red – and green – tape. These policy settings are essential to enable the investment needed to support net zero goals of Australia and the region.”
TIDE TURNING?
However, the report noted there was a growing group of companies and industry associations in Australia and Japan that were wresting control of the narrative away from fossil fuel companies.
Australian companies like Atlassian and Fortescue, as well as groups like the Smart Energy Council, have helped shape the narrative that the county can become a renewable energy superpower through the government’s Future Made in Australia initiative.
In Japan, the Japan Climate Leaders’ Partnership, a network of over 220 companies, has called for a 60% renewable energy target by 2035 in the 7th Strategic Energy Plan.
“A greener Japan-Australia relationship built on a clean energy partnership has significant potential to curb emissions across Southeast Asia while delivering substantial economic benefits to both countries,” the report said.
At COP30 in Brazil, Australia was one of a number of countries that signed the Belem Declaration to Transition Away from Fossil Fuels.
However, InfluenceMap’s Herring said there was inconsistency between Australia signing the declaration to transition its domestic economy while still promoting the export of fossil fuels globally.
“There’s a really important opportunity for the Australian government to make a credible commitment towards phasing out fossil fuel exports in line with IPPC timelines in the lead up to Australia’s role as COP31 president of negotiations,” he told Carbon Pulse.
Reade more: Confidential report warns Australian LNG could displace and delay energy transition in Asia
By Mark Tilly – [email protected]
