Japan's Energy Transition: Balancing Security, Nuclear, and Decarbonization
*Editor’s note: This article was originally published on 6/11/2024 on Linkedin.
Welcome! I'm Hiroyasu Ichikawa, ichi, and this is issue 109 of the "Japan Climate Curation" newsletter📬, which curates Japan-related climate news content every week since spring 2022, with over 280 subscribers [ more than 2,330 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)!
[🇯🇵📰👀Japan Climate News Headlines]
【1】Report “Policy Making Process in Japan: Strategic Energy Plan as a Case Study” [6/5 Climate Integrate]
Japan's Strategic Energy Plan (SEP) is central to the country's climate and energy policies, and the report examines the complex committee structures and decision-making processes involved.
Most committee members in the 15 major consultative bodies are from energy-intensive industries, with few from proactive energy transition companies, NPOs, younger generations, or females.
The report concludes that Japan's climate and energy policy deliberations need more democratic processes, expertise, and diversity in advisory and consultative bodies.
【2】Megatrends shaping the 7th Strategic Energy Plan [6/5 Power Japan ]
Japan's Ministry of Economy, Trade and Industry (METI) has begun discussions to craft the 7th Strategic Energy Plan (SEP), which will outline the country's medium—to long-term roadmap for energy policy up to 2035 and 2040.
Five major "megatrends" are shaping the discussions: strengthening energy security, meeting rising energy demand from AI and data centers, leveraging energy policy for economic competitiveness, submitting an updated NDC under the Paris Agreement, and expanding nuclear energy and renewables.
The new SEP will likely prioritize nuclear energy and renewables, while fossil fuels like coal and gas will continue to decline, although there are no clear plans for a rapid phase-out.
【3】Geopolitics and the New Energy Situation [6/10 Renewable Energy Institute]
The Russian invasion of Ukraine exposed the economic risks of depending on imported fuels. While renewable electricity offers a cheaper alternative, China's dominance in clean energy technologies is a concern. Europe, the US, and Japan are working to build domestic industries and reduce reliance on China.
【4】Japan Set for Next Nuclear Power-Funding Bond With Kansai Deal [6/10 Bloomberg]
Kansai Electric Power Co. plans to issue Japan's second transition bond, worth approximately ¥30 billion, to finance nuclear power and zero-carbon thermal power projects.
This move aligns with the Japanese government's support for transition bonds, which allow a more gradual approach to achieving climate goals.
However, these bonds face skepticism internationally due to their lack of specific environmental project financing.
The surge in transition bond sales in Japan follows the government's issuance of such debt earlier this year, with Kyushu Electric Power Co. having sold similar bonds last month.
【5】China, Japan vie for influence over Southeast Asia's decarbonization - Beijing's Belt and Road could put dent in Tokyo's direct investment efforts [6/8 Nikkei Asia]
China and Japan compete for influence in Southeast Asia as countries pursue decarbonization
Laos, the "battery of Southeast Asia," is a key player with its renewable energy exports
China is deepening ties with Laos and Myanmar through infrastructure projects, raising concerns
【6】Indonesian fertilizer maker eyes 'clean' ammonia for East Asia - Low-carbon energy plans in Japan, South Korea expected to boost demand [6/10 Nikkei Asia]
Indonesia's state-owned fertilizer maker Pupuk Indonesia is accelerating the development of blue and green ammonia, targeting demand in Japan and South Korea. Collaborating with Japanese firms, the company aims to become a major Asian supplier.
【7】Suzuki to Stop Making Cars in Thailand to Focus on EV Shift [6/7 Bloomberg]
Suzuki Motor Corp. will stop producing vehicles in Thailand by 2025 to prioritize EV and hybrid production in other locations. The company will continue sales and service in Thailand through imports. The move aligns with Suzuki's goal of offering 6 EV models by 2030-31 amid a global EV push.
【8】Japan weather bureau says 60% chance of La Nina forming towards autumn [6/10 Reuter]
Japan's weather bureau said that the El Nino phenomenon had ended and that there was a 60% chance that La Nina would form towards the northern hemisphere autumn.
La Nina is characterized by unusually cold ocean temperatures in the equatorial Pacific region and is linked to floods and drought. El Nino is a warming of ocean surface temperatures in the eastern and central Pacific.
【9】Green Transformation[GX], shortage of 2 million suitable personnel, annual income of 10 million yen offered in competition for human resources. [6/10 Nikkei newspaper (Japanese)]
Japan faces a growing shortage of skilled workers for the Green Transformation (GX) to achieve a decarbonized society.
Despite the estimated creation of over 2 million GX-related jobs by 2035, there is a lack of qualified personnel.
The government and the "GX League" have recently defined GX Human Resources and established skill standards. However, the labor market lacks the necessary talent, and Japan lags behind Europe in employee reskilling efforts.
The public and private sectors must collaborate on "green reskilling" initiatives to reduce greenhouse gas emissions by 46% by 2030.
【10】More Japanese students interested in 'ethical job hunting' [6/10 NHK World]
Japanese university seniors prioritize companies with strong social and environmental values during job hunting.
A university student, inspired by the landslide devastation in his hometown, chose an energy firm promoting carbon neutrality over a major appliance manufacturer.
The trend of "ethical job hunting" is growing among Japanese students, influenced by their exposure to Sustainable Development Goals and volunteer activities.
📬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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ichi (Hiroyasu Ichikawa)