Energy Transition / Green Transition Bond / EV transition
*Editor’s note: This article was originally published on 11/7/2023 on Linkedin.
Welcome! I'm Hiroyasu Ichikawa, ichi, and this is issue 79 of "Japan Climate Curation" newsletter📬, which curates Japan-related climate news content every week since spring 2022, with over 190 subscribers [ more than 1,900 on Linedin]. You can subscribe by clicking on the Linkedin page or the form below.
Ten news articles were curated this week, covering Energy Transition, Green Transition Bond, EV transition, and more.
I hope you find the articles below beneficial for reading (or skimming)!
*Consulting Service is available for your Japan-related climate or net-zero business. The first 30 minutes of Zoom chat is free, and I could work at an hourly rate starting at $100. Please fill out your request using this link. Thank you!
[🇯🇵📰👀Japan Climate News Headlines]
【1】[Opinion] How Japan Became the Land That the Energy Transition Forgot [11/6 Bloomberg]
Post-Fukushima, Japan and Germany diverged sharply in energy policy. Japan ceased its nuclear program and turned to coal, while Germany phased out nuclear slowly, bolstering wind and solar.
Over a decade later, Japan lags behind, with increased fossil fuel reliance, marginal reductions in emissions, and high electricity costs. Japan’s geography, land ownership issues, and unique power market structure impede its renewable energy expansion despite the nation’s technological heritage.
Germany, in contrast, has made significant gains in renewable energy, though both nations face challenges in the energy transition.
【2】Japan's green transition bonds find 'more open-minded' investors Economy ministry leads industrial decarbonization, confronts 'transition-washing' fears [11/6 Nikkei Asia]
Japan is pioneering the issuance of sovereign transition bonds, targeting a massive 20 trillion yen to spur a green transformation in heavy industries. The move seeks to boost technology investments, though it faces scrutiny over environmental impact promises and the practicality of new technologies.
【3】60% of VCs plan to increase startup investment, strengthen environment and AI [10/29 Nikkei Shimbun]
The domestic startup investment in Japan is showing signs of recovery, with a majority of venture capital firms planning to increase their investments in 2023.
Interest rates and favorable government policies are contributing to a more optimistic investment climate compared to the international scene, particularly the US, where startup investments have declined. Japanese VCs are prioritizing areas like environment, energy, AI, and IoT, aligning with global social trends.
However, the absolute amount invested in Japan remains significantly lower than in the US. Experts suggest that while the investment climate is improving, there will be a tougher selection process, favoring established firms.
【4】Japan sets new nuclear fusion record - Its massive tokamak just achieved its first plasma. Here’s what that means for the future of fusion. [11/4 Freethink]
Japan's JT-60SA tokamak marks a breakthrough by reaching first plasma, aiding the global pursuit of sustainable fusion energy and setting the stage for the ITER project.
【5】Japan Mobility Show: Redefining transportation [11/1 NHK World Japan] The Tokyo Auto Show has been reborn as the Japan Mobility Show, and the exhibits show a new industry taking shape, with size, shape and power formats all going through major transformations.
【6】Toyota Has Put EVs First and Should Be Less Shy About Saying So - The auto world needs the manufacturer poised to put its 25 millionth electrified vehicle on the road to get in the EV game. [11/06 Bloomberg]
Toyota is exhibiting its commitment to electric vehicles (EVs) with an array of battery-electric models displayed at the Japan Mobility Show, signaling a shift towards a "BEV-first mindset" as articulated earlier by CEO Koji Sato.
Despite this, Sato appears hesitant to fully embrace this rhetoric publicly. Toyota's financial strength is evident with impressive earnings and investments in R&D and a new US cell factory.
However, EVs still represent a small fraction of Toyota’s sales forecast, suggesting a gap between its capabilities and market trends. Toyota needs to adopt the same aggressive approach to BEVs that it did with hybrids to maintain its industry leadership.
【7】The battle for the future of car manufacturing - Toyota takes on Tesla’s gigacasting Japanese carmaker is working on new approach as it aims for big increase in EV production [11/6 Financial Times]
Toyota grapples with Tesla's revolutionary gigacasting method, balancing its $8bn investment in EVs and solid-state battery advances with the need to evolve or counter Tesla's efficient production processes.
【8】J-Power to shut 2 coal-fired power plants in 2025 [10/31 Reuters]
J-Power to close two coal-fired units in Matsushima by 2025 to cut CO2 emissions towards a 2025 goal.
Plans include a new gasification facility for one unit to reopen in 2028, aiming for efficiency and lower emissions.
J-Power aims for a 19% reduction from 2013 CO2 levels, and will explore biomass, ammonia fuels, and CCUS for a cleaner operation.
【9】Two more Japanese nuclear reactors granted 20-year extensions [11/ 1 NHK World Japan]
Japan's nuclear authority has approved 20-year extensions for two reactors at the Sendai plant in Kagoshima.
Reactors can extend beyond the 40-year limit if passing the Nuclear Regulation Authority's screening. This decision raises the total of Japanese reactors operating beyond 40 years to six.
Japan extends the operational life of two Sendai nuclear reactors by 20 years, bringing the number of reactors exceeding the 40-year post-Fukushima limit to six.
【10】A Wooden High-Rise Outside Tokyo Grows Japan’s Timber Ambitions Obayashi Corp.’s Port Plus building in Yokohama unites contemporary mass timber construction techniques with traditional Japanese joinery. [11/6 Bloomberg Green]
Port Plus, a wooden-framed, fire-resistant high-rise in Yokohama, near Tokyo, represents a significant departure from traditional construction materials in Japan, focusing on sustainable timber to reduce carbon emissions.
Constructed by Obayashi Corp., a company with a legacy dating back to 1892 and known for iconic projects like Tokyo Central Station, this building showcases innovative techniques such as rigid cross-joints and fire-resistant plasterboard, prioritizing environmental concerns and the well-being benefits of natural materials. Despite the higher costs, the demand for such green buildings is driven by Japan's carbon-neutral goals for 2050.
📬That's all for this week! Thank you for reading(or skimming) 🙇. I hope you will have a wonderful week ahead!
*Consulting Service is available for your Japan-related climate or net-zero business. The first 30 minutes of Zoom chat is free, and I could work at an hourly rate starting at $100. Please fill out your request using this link. Thank you!
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ichi (Hiroyasu Ichikawa)