Japan's Bold Climate Goals: Is a 60% Emissions Cut by 2035 Enough?
This week's Japan climate news features major policy shifts: a new 60% emissions cut target by 2035 and plans to remove nuclear reduction commitments.
*Editor’s note: This article was originally published on 12/25/2024 on Linkedin.
Welcome! I'm Hiroyasu Ichikawa, ichi, and this is issue 135 of the "Japan Climate Curation" newsletter📬, which has been curating hand-picked Japan-related climate news content every week since spring 2022, with over 380 subscribers [ more than 2,640 on Linedin]. You can subscribe by clicking on the Linkedin page or the form below.
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*Disclaimer: Generative AI tools such as Claude Sonet 3.5 has been used for summary and translation assistance 🙂
This week's newsletter will be the last one for 2024. Thank you for being a loyal reader throughout the year. I plan to resume publication on January 14th.
Wishing you a wonderful holiday season and end of year. Here's hoping 2025 brings prosperity and fulfillment to you all🥳.
This week's Japan climate news features major policy shifts: a new 60% emissions cut target by 2035 and plans to remove nuclear reduction commitments. The energy landscape is evolving with AI's growing power demands, while new offshore wind projects advance renewable goals. In automotive news, Honda and Nissan explore a potential merger. Meanwhile, Kepple launches a new consortium bridging Japanese companies with global climate tech startups.
[🇯🇵📰👀Japan Climate News Headlines]
【1】Japan Aims for 60% Emissions Cut by 2035 in Target Seen as Lax [12/24 Bloomberg🔏]
The new 60% reduction target updates Japan's previous goal of 46% reduction by 2030
Japan is among the world's top five carbon dioxide emitters
The plan requires approximately $7.7 trillion in energy industry investment through 2050
Climate Action Tracker suggests an 80% cut is needed to meet the 1.5°C global temperature goal
Business groups and the National Governors' Association are pushing for more ambitious targets
Shota Ikeda, president of Hachidori Solar and panel member, criticized the government's consultation process for focusing solely on economic costs while ignoring climate damage risks, arguing that Japan should target a 66% emissions reduction by 2035 to align with IPCC guidelines.
【2】Japan's "Galapagos Syndrome": Nuclear Policy Shift Calls for National Debate [12/25 Mainichi Newspaper🔏🇯🇵]
The government plans to remove the "nuclear power reduction" policy from its Basic Energy Plan, marking a major policy reversal
Current advisory council discussions are criticized as lacking genuine debate and public input
Japan's 2012 deliberative polling experience successfully influenced policy but wasn't repeated
European countries are advancing with citizen assemblies while Japan's public consultation remains limited
Critics argue for the need for comprehensive public debate before finalizing this significant policy change
【3】Japan’s Energy Strategy Highlights AI’s Threat to Green Goals - The rapid rollout of massive power-hungry data centers jeopardizes the transition to cleaner fuels.[12/23 Bloomberg🔏]
Japan's latest energy strategy reveals an unexpected shift in power demand projections, with electricity consumption expected to rise by 22% through 2040 despite a declining population.
This surge is primarily attributed to the growth of AI and data centers.
In response, Japan is reinforcing its commitment to natural gas as a transition fuel while maximizing nuclear and renewable energy usage.
The strategy aims for renewables to comprise 40-50% of the power mix by 2040, though experts say this falls short of net-zero goals.
This scenario highlights the growing tension between energy security and climate objectives in the AI era.
【4】Japan selects two groups for third offshore wind power round [12/25 Reuters]
Japan has selected two consortiums for its third round of offshore wind power auctions, including one featuring energy giant BP, marking another step in the country's renewable energy expansion.
The first consortium, comprising JERA, Green Power Investment, and Tohoku Electric Power, won a 615 MW project off Aomori prefecture, while the second group, including Marubeni, Kansai Electric Power, BP IOTA, Tokyo Gas, and Marutaka, secured a 450 MW farm off Yamagata prefecture.
Both projects will begin operations in June 2030, using Siemens Gamesa turbines. This aligns with Japan's ambitious target of 45 GW offshore wind capacity by 2040.
【5】Is Japan finally ready to tap its abundant geothermal energy potential? [12/22 The Japan Times]
Japan has the world's third-largest geothermal potential, behind only the US and Indonesia
Current geothermal contribution is only 0.3% of total power, with capacity around 500MW
Prime Minister Ishiba sees geothermal as key to both decarbonization and rural revitalization
Main obstacles include hot spring industry opposition and national park regulations
The Japan Onsen Association seeks stricter monitoring and community consensus for development
【6】Korea’s $800 Billion Pension Fund Will Start Exiting Coal Firms [12/19 Bloomberg Green🔏]
South Korea's National Pension Service (NPS), the world's third-largest retirement fund, has announced plans to divest from coal-related investments under new climate policies.
Starting 2024, the fund will stop investing in overseas companies deriving more than 50% of their revenue from coal operations, with domestic companies following suit by 2030.
However, climate activists criticize the policy as too lenient compared to global peers.
The $800 billion fund manages about 1,146 trillion won in assets, with approximately 5% of its global equity portfolio allocated to the energy sector.
Domestic companies may continue receiving investment if they demonstrate energy transition plans.
While Norway’s $1.7 trillion fund, which has been one of the global pioneers, said in 2016 that it had started removing companies based on their use of coal from its portfolio, Japan’s $1.6 trillion fund has also been accused of treading water on sustainable investing.
【7】Honda and Nissan eye merger by mid-2026 under holding company - Carmakers aim to wrap up talks by June but on premise of Nissan's turnaround [12/23 Nikkei Asia🔏]
Honda and Nissan plan to establish a joint holding company by August 2026, with Honda taking the lead in management and board composition, aiming to enhance their competitiveness in electrification and software development.
The companies aim to sign a definitive agreement by June 2025, with Honda announcing a significant 1.1 trillion yen share buyback program to be executed throughout 2025.
Seven potential synergies have been identified, including combined R&D and standardized vehicle platforms, targeting combined sales revenue exceeding 30 trillion yen and operating profit over 3 trillion yen.
Mitsubishi Motors may join the merger talks with a decision expected by January 2025, while both companies maintain their existing partnerships with Renault and GM respectively.
【8】Dire Situation in China Is One Reason for Honda, Nissan Merger [12/23 Bloomberg🔏]
Honda and Nissan's merger discussions are primarily motivated by their weakening position in the Chinese market
Nissan's Chinese production has halved from its peak, while Honda plans to cut capacity by 20%
The merger talks accelerated after Foxconn showed interest in acquiring a stake in Nissan
Both companies face significant overcapacity issues, with Nissan utilizing only 64% of its global production capacity
【9】Why Mergers of Carmakers Like Honda and Nissan Often Falter [12/24 New York Times🔏]
Honda and Nissan's potential merger reflects the auto industry's push to adapt to electrification and market challenges. However, historical precedents suggest major obstacles in combining large automotive companies, from cultural clashes to operational integration, making success far from guaranteed despite potential synergies.
【10】Kepple Launches Climate Tech Consortium to Foster Collaboration Between Global Startups and Japanese Companies in Decarbonization Push [12/20 @Kepple 🇯🇵]
Free membership consortium connecting Japanese companies with global climate tech startups
Over 30 companies already participating, with focus on business corporations and financial institutions
Offers exclusive seminars, networking events, and resources to strengthen knowledge and connections
Aims to help Japanese companies take global leadership in decarbonization efforts
Kickoff event planned for February 28, 2024, featuring global climate tech experts and networking opportunities
📬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🙂🙇
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