TOKYO—A top Japanese energy official called on Australia to back away from new carbon-emissions rules that Tokyo says threaten its energy security, stepping up a rare fight between the two U.S. allies. The Australian rules, which took effect July 1, require new liquefied-natural-gas facilities to be carbon-neutral on their first day of operations.
Tokyo says that could effectively make it impossible for new LNG export terminals to start operating in Australia, which supplies more than 40% of Japan’s natural-gas needs. Japan and Australia normally enjoy close ties, and both are longstanding military allies of the U.S. But the dispute over energy has opened cracks in the relationship as Japan accuses Australia of betrayal and Australia says its commitment to go green shouldn’t be questioned by Tokyo.
“If this issue cannot be resolved, this might undermine long-trusted relations," Yuki Sadamitsu, director-general of natural resources and fuel at Tokyo’s Ministry of Economy, Trade and Industry, said Tuesday. Australia’s climate change and energy minister, Chris Bowen, said that his country would remain a reliable energy exporter. “But equally our emissions reduction targets are real, and we will not waver on implementing policies taken to the election and passed by our parliament," Bowen said, referring to the Australian election last year that brought center-left Prime Minister Anthony Albanese to power.
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