Banking Exodus: MUFG Joins 8 Major Banks Fleeing Climate Alliance Amid $44B US LNG Deal
Japan pursues its 2050 carbon neutrality goal with a mixed energy strategy, targeting 40-50% renewables and 20% nuclear by 2040 while simultaneously securing record LNG purchases from the US.
*Editor’s note: This article was originally published on 3/18/2025 on Linkedin.
Welcome! I'm Hiroyasu Ichikawa, ichi, and this is issue 145 of the "Japan Climate Curation" newsletter📬, which has been curating hand-picked Japan-related climate news content every week since spring 2022, with over 440 subscribers [ more than 2,740 on Linedin]. You can subscribe by clicking on the Linkedin page or the form below.
I hope you find the articles below beneficial for reading (or skimming)!
Found this week's news insights valuable? Please give it a quick "like" or "share" on LinkedIn – you never know who else in your network might benefit from staying in the loop on Japan's climate scene🙂🙇
*Disclaimer: Generative AI tools such as Claude Sonet 3.5 has been used for summary and translation assistance 🙂
【Digest of this week's topics】
Japan pursues its 2050 carbon neutrality goal with a mixed energy strategy, targeting 40-50% renewables and 20% nuclear by 2040 while simultaneously securing record LNG purchases from the US. As MUFG joins other major banks exiting climate alliances amid political pressure, Mazda adopts a 'Lean Asset Strategy' slashing EV development costs by partnering with China's Changan. Meanwhile, green initiatives face challenges as Iwatani withdraws from Australia's hydrogen project, while Japan expands satellite emissions tracking across Asia and supports sustainable innovation through Kering's startup awards.
[🇯🇵📰👀Japan Climate News Headlines]
【1】Japan's MUFG to leave climate banking alliance amid Trump-driven exodus [3/19 Nikkei Asia]
MUFG plans to exit the UN-led Net Zero Banking Alliance (NZBA)
Sumitomo Mitsui FG and Nomura have already left; three other Japanese banks considering
Six major U.S. banks including JPMorgan have announced exits since December
MUFG intends to continue climate-related financing despite withdrawal
Republican lawmakers have criticized NZBA activities as violating antitrust laws
【2】Japan's youth climate activists still searching for a breakthrough [3/16 The Japan Times]
Despite growing global concern about climate change, Japanese youth climate activists are struggling to make significant impact on national policy
Fridays for Future has established branches in 20 regions across Japan, yet their demonstrations rarely exceed 100 participants, while similar protests worldwide attract thousands
A recent survey found 87% of Japanese youth believe climate action is important, but Japan was the only country where over 10% of youth indicated they don't care about responding to climate change
More than one-third of Japanese teenagers (17-19 years old) either don't know or don't believe that greenhouse gas emissions cause climate change
【3】The Seventh Strategic Energy Plan (Ms. Yukari Takamura, Professor, Institute for Future Initiatives, The University of Tokyo) [3/18 Foreign Press Center Japan]
The 7th Strategic Energy Plan approved in February 2025 is premised on achieving carbon neutrality by 2050 and 73% emissions reduction by 2040
Key features include adopting a "backcasting" approach and shifting nuclear power policy
The 2040 energy mix targets 40-50% renewable energy, 20% nuclear power, and 30-40% thermal power
Challenges include building local consensus, insufficient concrete measures, and addressing increased power demand from data centers and semiconductor factories
Professor Takamura noted it marks a turning point toward balanced decarbonization using diverse energy sources while positioning renewables as the main power source
【4】Mazda unveils new EV strategy as industry transforms [3/18 Nikkei Asia]
Mazda announced "Lean Asset Strategy" with plans to launch a new EV by 2027
Battery development budget cut in half, shifting to joint development with China's Changan Automobile
As a small manufacturer, Mazda will produce EVs on existing lines, reducing initial investment by 85%
Partnerships with Toyota and Denso will be utilized to address increasing software development needs
In the era of electrification and software, Mazda will boldly expand cooperation areas to maintain competitiveness
【5】Japan's Iwatani exits Australia green hydrogen project [3/19 Nikkei Asia]
Iwatani withdraws from Queensland project that aimed to produce 70,000 tonnes of green hydrogen annually
Project partners included Marubeni, Kansai Electric Power, Stanwell, and Keppel
Continuation became difficult after Queensland government announced it would halt further investments
Hydrogen emits no CO2 when burned and is considered a promising next-generation energy source
Hydrogen business faces high production and transportation costs, making profitability difficult without subsidies
【6】Japan uses satellites to expand greenhouse gas tracking in Asia [3/14 Nikkei Asia]
Japan is expanding greenhouse gas monitoring in Asia using the Ibuki and Ibuki 2 satellites
Currently covering Mongolia, Uzbekistan, Kazakhstan, Tajikistan, and Kyrgyzstan, monitoring will extend to Turkmenistan by fiscal 2026
The Paris Agreement requires all countries to report emissions to the UN biannually from 2024
Japan's Environment Ministry plans to further expand satellite data usage from fiscal 2027, including data from the new GOSAT-GW satellite launching in early fiscal 2025
This technology will enable tracking emissions throughout supply chains and prevent greenwashing by providing precise measurements
【7】Opinion | Japan has a gas problem [3/18 Nikkei Asia]
Japan remains bound by long-term LNG contracts while domestic demand decreases, forcing utilities to sell surplus gas in secondary markets
JERA, the world's largest LNG buyer, faces greenwashing accusations while contributing 15% of Japan's emissions
Natural gas, despite lower emissions than coal, suffers from methane leakage issues
Japanese gas companies should halt new LNG projects and increase renewable energy investments
【8】Deepening U.S.-Japan Clean Energy Cooperation [3/12 CSIS]
The CSIS panel discussed advancing collaboration following the February 2024 summit between President Trump and Prime Minister Ishiba
Japanese speakers highlighted risks of China dependency in supply chains, institutional reforms needed for innovation, and the importance of transition finance
US panelists emphasized policy alignment between both countries, strengthening financial institution cooperation, and developing technologies to meet new demand
Both sides showed positive interest in LNG, nuclear energy, and critical minerals cooperation
Slight differences were noted in approaches toward China and priority setting
【9】Japan To Buy 'Record Amounts' of LNG From US After Trump and Ishiba Meet [2/25 Energy Tracker Asia]
Japan agreed to purchase "record amounts" of LNG from the US following the Trump-Ishiba summit
This agreement appears aimed at avoiding tariffs threatened by the Trump administration
A $44 billion LNG project in Alaska is planned, representing about 30% of Japan's annual LNG import needs
Japanese companies continue to commit to LNG contracts despite declining domestic demand, with reselling to Southeast Asia as the apparent goal
This move may hinder Japan's progress toward climate goals and slow energy transition in the Southeast Asian region
【10】Kering held the first Kering Generation Award X Japan Ceremony [3/18 Kering]
Kering Group held the first "Kering Generation Award X Japan" in Tokyo on March 13th
The event focused on sustainable fashion and beauty, with 11 startups selected from over 120 applications advancing to the final judging
" Fermenstation Co., Ltd." won first prize for their technology transforming food waste into natural aromatic essences through fermentation
This award, which began in China in 2018 to support innovations with positive environmental and social impact, was held in Japan for the first time
📬That's all for this week! Thank you for reading(or skimming) 🙇. I hope you will have a wonderful week ahead!
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