Reports claim the US government has requested that Japan and the Japan Bank International Corporation withdraw coal-related lending to developing countries that are likely to use the fuel as a means of fast economic growth.

It is reported that there have already been high-level talks between the US and staff at JBIC. Results are said to be ongoing, but Japan is one of the key countries the US will be lobbying to tackle the issue.

The JBIC continues to be the largest single provider of funding to new coal plants in developing countries, according to the National Resources Defence Council.

The Japan Bank issued a statement saying that no US or multilateral institutions had asked it to stop financing coal.

However, according to NRDC, Japan’s largest development bank has given $US12 billion ($A13.3 billion) to coal-fired power station projects in 2007 to 2013.

TNC’s Toshiba and Hitachi are rumoured to be major beneficiaries of Japan’s funding of coal-power stations in countries such as Vietnam, Thailand and Indonesia.

However, JBIC says the companies only install the most efficient coal-fired technology where there a few alternatives to burning fossil fuels.

Observers say Japan is becoming increasingly isolated by continuing to fund coal-power, after the US government said multilateral financial institutions should limit their exposure to the fuel industry.

Institutions such as World Bank, US Export-Import Bank and the European Investment Bank have all pledged to scale back involvement in the sector.

If JBIC cut back funding to coal power, other institutions would have to follow suit for the US’s global ‘divestment’ campaign to be effective.