Japan Climate Curation 2025 Wrap-up: A Pivotal Year at the Crossroads
As we wrap up 2025, thank you for reading Japan Climate Curation this year. I’ve also created a 2025 Year-in-Review infographic—hope it’s useful. Wishing you a restful holiday season!
*Editor’s note: This article was originally published on 12/25/2025 on Linkedin.
🎧🗣️Audio Versions of this newsletter are available thanks to NotebookLM
In English🇺🇲: Japan Climate Curation vol. 184 [4:49 min.]
In Japanese🇯🇵: Japan Climate Curation vol. 184 [4:54 min.]
The English audio digest of a sister publication, Climate Curation, which covers mainly non-Japanese global climate news, is available.
🇺🇲Climate Curation vol. 189 audio summary in English [5:59 min.]
🇯🇵Climate Curation vol. 189 音声概要 [5:07 min.]
Welcome! I'm Hiroyasu Ichikawa, ichi, and this is issue 184 of the "Japan Climate Curation" newsletter📬, which has been curating hand-picked Japan-related climate news content every week since spring 2022, with over 490 subscribers [ more than 3,070 on LinkedIn]. You can subscribe by clicking on the Linkedin page or the form below.
As this is the final issue of 2025, I want to express my sincere gratitude for your readership throughout the year. Wishing you a wonderful holiday season and a Happy New Year! I've also created a 2025 Year-in-Review infographic—please take a look.
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 your preferred network – you never know who else in your network might benefit from staying in the loop on Japan's climate scene🙂🙇
*note : "Climate Curation" a different climate newsletter in Japanese (every Saturday) is available on Linkedin / note / theLetter. It curates Japan and global climate-tech trends. I hope you like it.
【Digest of this week’s topics】
Nuclear Milestone: TEPCO restarts Kashiwazaki-Kariwa Unit 6 on Jan 20—world’s largest plant (8.2 GW), first since Fukushima; data centers planned on-site as nuclear-AI convergence arrives. Policy Pivot: Mega-solar FIT/FIP ends FY2027 amid Chinese panel concerns; ¥210B ($1.34B) demand-side subsidies launch for 100% clean energy users (up to 50% capex). Carbon Pricing: GX-ETS launches FY2026 covering 60% of emissions; price corridor ¥1,700–4,300/ton. Global Plays: Japan-US $550B investment talks begin—energy leads at $327B; JERA secures 15-year ammonia subsidy (500,000 tons/year from FY2029). Tech Bet: NSG pivots to perovskite—50-100% efficiency gains critical for space-constrained Japan. Legal First: 450 plaintiffs file Japan’s first climate lawsuit over government inaction. 2025 Review: Nuclear returned to center; automakers in crisis; record 41.8°C heat; deep tech push accelerated.
*Disclaimer: Generative AI tools such as Gemini3.0, ChatGPT, Claude and NotebookLM have been used for summary and translation assistance. 🙂
[🇯🇵📰👀Japan Climate News Headlines]
【1】Japan’s TEPCO to partially restart world’s biggest nuclear power plant on January 20 [12/25 Reuters]
TEPCO will restart Unit 6 of Kashiwazaki-Kariwa, the world’s largest nuclear plant (8.2 GW), on January 20, 2025. Niigata prefecture approved the restart this week—TEPCO’s first since the 2011 Fukushima disaster. Commercial operations begin February 26. Japan has restarted 14 of 33 operable reactors.
Why It Matters:
A pragmatic pivot on decarbonization: This signals Japan’s acknowledgment that nuclear is essential to achieving carbon neutrality by 2050—reshaping assumptions for corporate long-term climate strategies.
The Fukushima operator moves forward: TEPCO restarting a reactor carries symbolic weight, potentially accelerating restarts across the industry and stabilizing energy costs for Japanese manufacturers facing CBAM pressures.
【2】Japan to tighten regulations on mega-solar projects to protect nature, landscape [12/25 Reuters]
Japan will end FIT/FIP support for large-scale solar from FY2027, tightening regulations to protect nature and landscapes. PM Takaichi has cited concerns over Chinese-made panels and environmental damage. Support for residential solar continues, and backing for domestic perovskite technology will increase.
Why It Matters:
Renewable growth bottleneck: Mega-solar restrictions plus offshore wind struggles narrow Japan’s path to 2030 targets—increasing pressure on nuclear restarts
Energy meets economic security: Concerns over Chinese panels signal that decarbonization will increasingly be filtered through supply chain sovereignty
【3】Japan to back clean-energy users with $1.3 billion in investment subsidies [12/23 Reuters]
Japan plans to provide ¥210 billion ($1.34 billion) in investment subsidies to companies using clean energy. Starting FY2026 over five years, businesses relying entirely on decarbonized electricity and contributing to power-generating regions can receive up to 50% of capital expenditure. Data centers also qualify. Part of the “GX 2040 Vision,” this initiative aims to boost stalling renewable energy adoption. A new “GX Strategy Region” system will create industrial clusters in areas with decarbonized power sources.
Why It Matters:
This marks a shift from supply-side to demand-side incentives—companies achieving 100% decarbonized electricity gain competitive advantage through substantial subsidies
The regional contribution requirement incentivizes relocation to renewable-rich areas like Hokkaido and Kyushu; with applications opening next fiscal year, companies must align procurement and investment strategies now
【4】Japan Sets Emissions Trading Price Corridor at ¥1,700–4,300 per Ton to Spur Investment [12/19 Nikkei]
Japan’s METI has finalized the GX-ETS design launching in FY2026, covering 300–400 companies emitting over 100,000 tons of CO2 annually—roughly 60% of national emissions. The system introduces a price corridor (¥4,300 ceiling, ¥1,700 floor per ton) rising annually at inflation plus 3%. The exchange opens autumn 2027. This “thermostat-style” mechanism reflects EU-ETS lessons on price volatility.
Why It Matters:
Price visibility enables companies to calculate decarbonization investment ROI with greater certainty—the floor price, benchmarked to J-Credit rates, will shape carbon credit market economics
As Asian nations explore emissions trading, Japan’s hybrid model combining mandatory coverage with price stabilization could become a regional reference framework
【5】TEPCO to develop data centers near world’s largest nuclear plant [12/22 Nikkei Asia]
TEPCO plans to develop data centers and hydrogen facilities near Kashiwazaki-Kariwa, the world’s largest nuclear plant, set to restart next month after 13 years. AI data centers consume 10 times more power than conventional ones, making on-site generation attractive. Amazon, Microsoft, and Meta have secured similar nuclear supply deals in the U.S.
Why It Matters:
Nuclear-AI convergence is now real in Japan—utilities gain new revenue streams while tech companies secure decarbonized power for Scope 2 targets
Regional power-source siting may reshape infrastructure investment, though latency challenges will test whether rural locations can compete with urban proximity
【6】Energy projects in focus for Japan’s $550bn US investment as talks begin [12/18 Nikkei Asia]
Japan and the U.S. begin talks on Tokyo’s $550B investment pledge. Energy leads at up to $327B, including nuclear. SoftBank proposed $25B; Westinghouse eyes a $100B reactor project with Japanese partners. First project targets AI-driven U.S. power strain.
Why it Matters:
Opportunity: Japan’s heavy industry gains a rare export market for nuclear and power equipment.
Risk: Talent and capital flowing abroad may slow Japan’s own energy transition.
【7】Japan’s JERA secures government subsidy for US ammonia imports [12/19 Reuters]
JERA, Japan’s largest power generator, secured a 15-year government subsidy to cover the price gap between ammonia and coal for US imports. From FY2029, JERA will import 500,000 tons annually from Blue Point—a $4B Louisiana JV with CF Industries and Mitsui—for 20% ammonia co-firing at Hekinan. Mitsui also secured support to supply 280,000 tons to Hokkaido Electric, Mitsubishi UBE Cement, and Tosoh.
Why It Matters:
Policy solves the economics problem: The 15-year price gap subsidy de-risks ammonia co-firing’s business case, signaling government commitment to bridge the cost gap between low-carbon fuels and coal for the long term.
Market expands beyond power: Offtake agreements with cement and chemical companies show ammonia is becoming a decarbonization tool for hard-to-abate industries—not just electricity generation.
【8】Japan glassmaker NSG goes all in on ultrathin solar panel material [12/24 Nikkei Asia]
Nippon Sheet Glass (NSG) is pivoting to perovskite solar cell substrates, focusing on glass and tandem types that boost efficiency 50-100% over conventional silicon. The company will leverage UK subsidiary Pilkington’s online coating technology to reduce production costs. Over 50 firms globally, led by Chinese players including gigawatt-scale UtmoLight, are competing.
Why It Matters:
Glass-type perovskite cells enable building-integrated photovoltaics (BIPV)—critical for space-constrained Japan where conventional solar deployment faces limits. This aligns with corporate demand for on-site renewable generation.
Perovskite offers Japan’s best opportunity to reclaim solar manufacturing relevance after losing the silicon race to China. NSG’s bet tests whether legacy material companies can convert existing technological assets into clean-tech competitiveness.
【9】Hundreds sue Japan’s central government over ‘unconstitutional’ climate inaction [12/18 The Japan Times]
Around 450 plaintiffs filed Japan’s first climate lawsuit seeking damages from the state, claiming government inaction is unconstitutional. The suit argues Japan’s 2035 targets fall short of IPCC recommendations and lack legal force.
Why It Matters:
Climate “litigation risk” is now real in Japan—if government faces legal challenge, corporations may be next
Businesses should prepare for potential policy pivots triggered by court rulings, as seen in South Korea and Germany
【10】Japan Climate Curation 2025 Wrap-up
Japan ended 2025 juggling competing priorities: restarting nuclear plants for immediate energy security, investing in next-generation technologies, and adapting to a climate that is already changing faster than expected.
🔹 Nuclear Takes Center Stage. The 7th Strategic Energy Plan positioned nuclear as the “centerpiece” of net-zero strategy, accelerating restarts including Kashiwazaki-Kariwa. Critics argued 40-50% renewable targets fall short of global commitments.
🔹 Automotive Crisis. Japanese automakers faced a “national crisis” as BYD captured Southeast Asian share. The Honda-Nissan merger collapsed; Nissan announced 20,000 job cuts. Toyota’s hybrid strategy proved resilient.
🔹 Unprecedented Heat. Japan’s hottest summer in 130 years peaked at 41.8°C. Rice shortages emerged and heatstroke hospitalizations exceeded 100,000—triggering mandatory heat safety legislation.
🔹 Deep Tech Push. Japan accelerated perovskite solar, fusion commercialization, and DAC partnerships while overhauling startup rules to attract global capital.
📬That’s all for this year! Thank you for reading(or skimming) 🙇. I hope you will have a wonderful year ahead!
Did you find this week’s news topics 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🙂🙇
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ichi (Hiroyasu Ichikawa)