<article><p class="lead">Japanese trading house Sumitomo is targeting to exit the coal-fired power plant business by the latter half of 2040, including withdrawing from both domestic and overseas project developments and thermal coal mining, to achieve its goal of reaching carbon neutrality by 2050.</p><p>Sumitomo plans to stop investing in new coal-fired power generation projects with the sole exception being the possible expansion of Bangladesh's <a href="https://direct.argusmedia.com/newsandanalysis/article/1603948">Matabari coal-fired power plant</a>. The firm is aiming to abandon its thermal coal mine assets by 2030 and complete all ongoing coal-fired power projects by the latter half of 2040.</p><p>Sumitomo has joined fellow trading firms <a href="https://direct.argusmedia.com/newsandanalysis/article/2194437">Marubeni</a> and <a href="https://direct.argusmedia.com/newsandanalysis/article/2193173">Sojitz</a> in toughening its stance on environmental issues. It previously decided to withdraw from new coal-fired power projects with some exceptions and to stop investing in new thermal coal mines, while holding on to its current assets.</p><p>One of Sumitomo's coal-fired projects is the 1.32GW <a href="https://direct.argusmedia.com/newsandanalysis/article/1965322">Van Phong 1</a> in Vietnam, which is targeting commissioning by 2023.</p><p>Sumitomo supplied 4.4mn t of thermal coal from its assets during the April 2020-March 2021 fiscal year, down by 25.4pc from a year ago. The company expects 2021-22 shipments to increase by 22.7pc to 5.4mn t.</p><p class="bylines">By Nanami Oki</p></article>
