Global companies face growing pressure to stop backing thermal power.

Last week, Nikkei Asia reported that Mitsubishi Corporation had decided to withdraw its support for the Vinh Tan 3 coal-fired power plant in Binh Thuan Province. The plant, which has yet to see construction begin, is scheduled for completion in 2024 but faces numerous hurdles as banks and engineering companies around the world reconsider investments in coal-fired electricity due to concerns over carbon emissions and climate change.

According to the news source, Mitsubishi held a 49% stake in the US$2 billion project, along with Hong Kong's CLP Group. EVN currently holds a 29% stake, while Chinese firms are expected to handle the actual construction work.

The status of Vinh Tan 3 is unclear though, and Standard Chartered and HSBC had already removed funding for the project, leaving the Industrial and Commercial Bank of China as the main financier.

This is the first time that Mitsubishi has pulled out of a thermal power plant project. The corporation is also involved in the controversial Vung Ang 2 coal-fired plant, which is planned in Ha Tinh Province. That project has been the subject of global petitions and recently attracted the attention of Greta Thunberg, the well-known Swedish environmental activist.

Mitsubishi has said that it would not be involved in similar future projects after Vung Ang 2.

Vietnam is at a critical point in determining its future power generation mix, as renewable sources such as solar and wind have surged in recent years, while numerous thermal power plant projects are currently collectively delayed by nearly 100 years.

[Photo via No Coal Japan]