Japan Energy Pulse: Climate Targets, Clean Tech Challenges, and Innovation Updates
Japan missed its UN climate target deadline while advancing nuclear fusion plans for 2030. Companies struggle with renewable transitions as METI projects 10% LNG demand growth by 2040.
*Editor’s note: This article was originally published on 2/12/2025 on Linkedin.
Welcome! I'm Hiroyasu Ichikawa, ichi, and this is issue 140 of the "Japan Climate Curation" newsletter📬, which has been curating hand-picked Japan-related climate news content every week since spring 2022, with over 410 subscribers [ more than 2,700 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 missed the UN deadline for submitting its 2035 greenhouse gas reduction target (60% reduction from 2013). The government decided to accelerate the construction of a nuclear fusion reactor by over five years, aiming to begin around 2030. Trading houses prioritize gas power development in Southeast Asia, while companies report losses in offshore wind operations due to rising material costs. On the innovation front, Chubu Electric Power is pioneering the world's first closed-loop geothermal system in Germany. METI projects a potential 10% increase in LNG demand by 2040.
[🇯🇵📰👀Japan Climate News Headlines]
【1】Japan Says It’ll Be Difficult to Submit New Climate Goal on Time [2/7 Bloomberg]
Environment Minister Asao announced on February 7th that Japan will likely miss the UN's February deadline for submitting updated climate targets.
The government aims to finalize its plan, which includes a target to reduce greenhouse gas emissions by 60% from 2013 levels by 2035, through cabinet approval by the end of March.
While Paris Agreement signatories are required to submit new reduction pledges by February, with some countries like the UK already outlining their updated goals, Japan's proposed target has faced criticism both domestically and internationally for lacking ambition. The ministry is currently reviewing public feedback on the plan.
【2】Japan's trading houses have a duty to turn off the gas - Corporate giants are able to spread renewable energy and shape policies across Asia [2/6 Nikkei Asia]
Japanese trading houses prioritize gas power development over renewables in South and Southeast Asia.
Despite their significant market influence and potential to lead clean energy transition, they plan to build nearly nine times more gas power capacity than solar and wind.
Japan's heavy reliance on fossil fuel imports (87% of total energy needs) contrasts with its enormous renewable potential, particularly in offshore wind farms, which could generate 1.7 times more electricity than Japan's primary energy supply.
Recent public opinion shows strong support for renewable transition, with 65% of Japanese people favoring the quick replacement of fossil fuels with renewable energy, while industry groups are pushing for more ambitious emission reduction targets.
Despite significant economic opportunities in clean energy transition (potential $6.7 trillion investment by 2050), major companies like JERA are setting modest renewable energy targets that fall short of national needs.
【3】Global Offshore Wind Challenges Are Hitting Japanese Operators [2/6 Bloomberg]
Mitsubishi Corp. reported a ¥52.2 billion loss in domestic offshore wind operations, with its president citing the Ukraine war, supply chain issues, inflation, and pandemic effects as factors.
The company is reviewing three offshore wind projects won in 2021 due to macroeconomic challenges, including high interest rates and supply costs.
The global wind industry faces widespread challenges, exemplified by Orsted's $1.7 billion earnings hit and BP's merger with a Japanese utility.
Japan aims for 10GW offshore wind capacity by 2030 and 30-45GW by 2040, but the wind only comprised 1.1% of the power mix in fiscal 2023.
Steel costs doubled between 2018 and 2024, cable costs rose 80%, and yen weakness compounds cost pressures for Japanese operators.
【4】Japan power company to debut new geothermal in Germany [2/6 NHK World]
Japanese utility giant Chubu Electric Power pioneers the world's first closed-loop geothermal system in Germany, marking a significant advancement in renewable energy technology. The system's innovative design could overcome traditional geothermal deployment limitations.
【5】With Nissan merger stalled, Honda confronts its own profit struggle - Neither company can match Toyota's margins on autos [2/10 Nikkei Asia]
Honda faces a strategic crossroads after failed Nissan merger talks, highlighting its auto division's profitability challenges and reliance on the motorcycle business.
Despite a strong financial position, the company struggles to find a path to scale needed for EV transition while global auto sales continue declining against rising Chinese competition.
【6】Japan may see LNG demand up if renewables are slow; Canada there to deliver, officials say [2/5 Reuters]
METI projects that Japan's LNG demand could reach 74 million tons by 2040 (10% increase) if renewable energy adoption lags and alternative energy costs remain high despite declining trends.
Japan's expanding data center sector is expected to grow power demand, potentially offsetting recent decreases in LNG consumption caused by economic weakness and renewable energy adoption.
Canada is positioning itself as a strategic LNG supplier to Japan through the LNG Canada project, emphasizing shorter shipping times than the U.S. Gulf Coast and seeking to diversify markets amid Trump's tariff threats. Alberta aims to double gas production for Asian markets, mainly targeting Japan as the world's second-largest LNG buyer after China, amid increasing global supply competition.
【7】SusHi Tech Tokyo 2025: Asia’s biggest startup event gets even bigger! - Organizers aim for 50,000 attendees, 500 overseas VCs, and 5,000 business meetings [2/7 JStories]
The third SusHi Tech Tokyo event will be held May 8-10, 2025, targeting 50,000 participants and 500 VCs from abroad, with a focus on AI, quantum tech, and food tech.
Last year's event drew 40,000 attendees and generated 3,500 business meetings, with 60% of 434 participating companies being international.
The 2025 event will introduce a "Public Day" for a general audience to learn about startups and cutting-edge technologies.
【8】In meat- and fish-loving Japan, veganism is making a comeback [1/29 Japan Times]
Japan's vegan market tripled between 2015 and 2020, with projections to double again by 2030, and 2.2% of Japanese people self-identify as vegan.
The 2020 Tokyo Olympics catalyzed government support for vegan businesses and menu development, promoting infrastructure development for tourists.
While traditional shojin ryori provides historical foundations for vegan dining, Westernization since the Meiji era has dramatically shifted the modern Japanese diet toward meat consumption.
Environmental concerns, animal welfare awareness, increasing allergies, and tourism demand drive the revival of vegan culture in contemporary Japan.
Despite challenges, including cultural pressure for conformity, limited options, and nutritional misconceptions, vegan cuisine is being explored as an inclusive food culture.
【9】Construction of Nuclear Fusion Demonstration Reactor to Begin Around 2030, Over 5 Years Ahead of Schedule [2/7 Asahi Shimbun]
The Japanese government has decided to accelerate its fusion power prototype reactor construction plan, aiming to begin around 2030.
By reducing the reactor size by 30% from the original design, they target power generation by 2039.
Repeated delays influenced this decision in the ITER project in France. The new plan, being similar in scale to ITER, can leverage existing technology and expertise.
Fusion power is considered a promising next-generation energy source as it potentially uses fuel extracted from seawater and produces no CO2 emissions. Aomori Prefecture has expressed interest in hosting the facility, with total project costs estimated at several trillion yen.
【10】SMART ENERGY WEEK [2/19-21@Tokyo Big Sight]02/19SMART ENERGY WEEK]
SMART ENERGY WEEK is a comprehensive exhibition of renewable energy technologies to achieve carbon neutrality by 2050. It showcases many clean energy technologies, from hydrogen and fuel cells to solar power, storage batteries, and smart grids.
The event features 1,600 exhibitors, 72,000 visitors, and 200 conference sessions. It covers 83,060㎡ floors, with participation from 59 international exhibitors and visitors. This exhibition is a crucial platform for sharing cutting-edge technologies and accelerating business development in the energy industry. (according to the official website).
I attended a few times in a row for the past 3 years, which was quite an experience.
*Not climate related but thought worth sharing🙂👨👩👧👦
【11】Glimpse of Japanese school life creates Oscar buzz [2/6 NHK World]
The short film Instruments of a Beating Heart documents daily life at a typical Japanese elementary school. It has won praise around the world and has been nominated for an Oscar.
📬That's all for this week! Thank you for reading(or skimming) 🙇. I hope you will have a wonderful week ahead!
📬That's all for this week! Thank you for reading(or skimming) 🙇. I hope you will have a wonderful week ahead!
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🙂🙇
The "Climate Curation" newsletter in 🇯🇵Japanese (every Saturday) is available on Linkedin and Substack.
Please feel free to contact me via email: hiroyasu.ichikawa [@]socialcompany.org, if you have any research/consulting needs for your business or just for a coffee chat☕.
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ichi (Hiroyasu Ichikawa)