⚛️ Japan's Next Leader Pivots to Nuclear as Solar Stocks Plunge and Offshore Wind Stalls
I'm very interested in seeing how the balance between climate action with energy security effort will be balanced.
*Editor’s note: This article was originally published on 10/8/2025 on Linkedin.
🎧🗣️Audio Versions of this newsletter are available thanks to NotebookLM
In English🇺🇲: Japan Climate Curation vol. 173 [5:27 min.]
In Japanese🇯🇵: Japan Climate Curation vol. 173 [8:50 min.]
🚀Now, the English audio digest of a sister publication, Climate Curation, which covers mainly non-Japanese global climate news topics, is available in English.
🇺🇲Climate Curation vol. 178 audio summary in English [5:56 min.]
🇯🇵Climate Curation vol. 178 音声概要 [7:11 min.]
Welcome! I'm Hiroyasu Ichikawa, ichi, and this is issue 173 of the "Japan Climate Curation" newsletter📬, which has been curating hand-picked Japan-related climate news content every week since spring 2022, with over 470 subscribers [ more than 2,990 on LinkedIn]. 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)!
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*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】
Japan’s energy strategy reached a political inflection point as incoming Prime Minister Sanae Takaichi announced nuclear power as the centerpiece targeting 100% self-sufficiency through advanced technologies including fusion, triggering a sharp market divide with nuclear stocks surging 6.5% while renewable developers plunged 15%. The renewable sector faced compounding setbacks: offshore wind auction indefinitely postponed following Mitsubishi’s withdrawal despite 2030’s 10 GW target requiring 40-fold capacity increase, solar panel recycling law backpedaled to nonbinding guidelines as 110,000 tons annual capacity proves inadequate for projected 2042 peak of 472,000 tons, and Takaichi’s opposition to “foreign-made solar panels” despite government’s 40-50% renewable target by 2040. Yet innovation accelerated with Ricoh’s inkjet perovskite cells targeting 14 yen/kWh by 2030, Climate Tech ventures including Helical Fusion and Planet Savers’ CO₂ DAC gaining prominence, and ¥20 trillion climate bonds funding subsidies—even as only 14 of 33 nuclear reactors operate and fusion remains decades away, exposing contradictions between ambitious 2040 targets and implementation reality.
*Disclaimer: Generative AI tools such as Claude Sonet 4.5 and NotebookLM have been used for summary and translation assistance. 🙂
[🇯🇵📰👀Japan Climate News Headlines]
【1】⚛️ Japan’s New Leader to Make Nuclear Center of Energy Strategy [10/6 Bloomberg Green]
Sanae Takaichi, Japan’s expected next prime minister and newly elected leader of the ruling party, is set to prioritize nuclear power as the cornerstone of the nation’s energy strategy while reducing emphasis on readily available renewables like solar power. Advocating for accelerating advanced nuclear technologies including fusion, she aims to achieve 100% energy self-sufficiency through next-generation reactors, continuing post-Fukushima policies that have pushed to restart idled units. Markets responded immediately, with nuclear power company shares surging up to 6.5% while renewable energy developers dropped as much as 15%. Takaichi opposes “further covering our beautiful land with foreign-made solar panels,” though she supports more efficient perovskite technology. However, significant challenges remain: only 14 of Japan’s 33 commercial nuclear units have resumed operation under stringent regulations, requiring high regulatory hurdles and local government support, while fusion technology remains decades away from commercial viability despite Japan’s aim to develop demonstration projects in the 2030s.
【2】📉 Japan’s conventional solar stocks tumble after Takaichi victory [10/6 Reuters]
Shares of Japanese renewable energy firm Renova plunged over 11% as Sanae Takaichi emerged as the likely next prime minister. Takaichi opposes large-scale solar projects using overseas panels, citing environmental concerns, while supporting perovskite solar cells and nuclear power. Nuclear expansion could lower electricity bills and control inflation. Japan spent 10.7 trillion yen annually on fossil fuel imports, representing 10% of total import costs.
【3】♻️ Japan backpedals on solar panel recycling law, eyes nonbinding guidelines [10/4 Nikkei Asia]
Japan is revising its solar panel recycling regulations, shifting from requiring manufacturers to cover costs to urging owners to recycle voluntarily. The Cabinet Legislation Bureau questioned the rationale for treating solar panels differently from home appliances and automobiles. The current recycling rate stands at only 54%, far below automobiles (over 90%) and appliances (70-90%). A massive disposal wave is expected from the 2030s, peaking at 472,000 tons in 2042. However, nationwide recycling capacity is only around 110,000 tons annually, with 12 prefectures having no facilities. Recycling costs are 4-6 times higher than landfill disposal. Experts warn that non-binding guidelines won’t promote environmentally conscious design or technological improvements.
【4】💰 Japan eyes subsidies for companies using renewables, nuclear power [10/4 Nikkei Asia]
Japan will provide subsidies for companies investing in advanced technology using renewable or nuclear power to promote industry while reducing carbon emissions. The Ministry of Economy, Trade and Industry will start accepting applications as early as next year, evaluating net-zero emission electricity plans with preference for long-term renewable energy contracts. The government will prioritize investments in chipmaking equipment, robots, and biotechnology. Factories near wind, solar, or nuclear facilities are especially preferred, aiming to create industry hubs in regions like Hokkaido, Tohoku, Hokuriku, and Kyushu. Subsidies will cover up to 50% for startups and 33% for large companies, funded by 20 trillion yen in climate transition bonds by fiscal 2032. The government targets renewables at 40-50% and nuclear at around 20% of the energy mix by fiscal 2040.
【5】🌞 Japan’s Ricoh eyes inkjet tech to make flexible solar cells [10/8 Nikkei Asia]
Ricoh is developing flexible perovskite solar cells using inkjet printer technology, targeting 300 megawatts production capacity by fiscal 2030 (90,000 households). Inkjet technology applies materials only where needed, eliminating laser processing and vacuum deposition equipment, significantly reducing costs. Collaborating with NTT Anode Energy and Daiwa House Industry, Ricoh aims for 14 yen per kilowatt-hour generation costs, aligned with government targets. Panasonic is also pursuing similar technology for Japan’s energy security.
【6】⚡ How next-gen solar panels could go on lampposts, cars and even windows [10/6 Financial Times]
Perovskite solar panels are emerging as next-generation technology. They are 20% more efficient and 200-300 times thinner than traditional silicon panels, with flexibility enabling installation on car roofs, lampposts, and windows. Tandem cells (perovskite + silicon) achieve 25% conversion efficiency. Manufacturing is simple, with perovskite sprayed like ink. However, they degrade faster with a 10-year lifespan (versus 25 for silicon) and contain lead. Oxford PV achieved the first commercial shipment, planning mass production from 2027. While Chinese companies accelerate investments, Japan provides $167mn in subsidies to support technology development.
【7】💨 Japan Delays Offshore Wind Pricing Bid in Green Push Setback [10/3 Bloomberg]
Japan has indefinitely delayed an auction for offshore wind funding levels pending an investment climate review. The Ministry of Economy, Trade and Industry postponed the October 14 bidding round, which sets feed-in premiums critical for developers. The delay follows global industry setbacks from high interest rates and raw material costs. Mitsubishi Corp. withdrew from projects in August citing escalating costs. Japan’s 2030 target of 10 gigawatts requires a 40-fold capacity increase. The next auction will likely occur after January with potential rule revisions.
【8】🌊 Japan selects two promising areas for offshore wind farms [10/3 Reuters]
Japan designated two sites off Akita and Fukuoka as “promising zones” for offshore wind farms on Friday, advancing renewable energy goals for 2050 carbon neutrality. The zones were upgraded from “preparatory” status and need further promotion to qualify for auction. Three new preparatory zones were also selected. However, confidence in offshore wind has been shaken by Mitsubishi Corp’s withdrawal from the first major auction due to soaring costs, prompting the government to review the scheme and consider additional support for operators.
【9】🔬 Can nuclear fusion save the planet? [10/6 Financial Times]
Nuclear fusion is attracting attention as the “holy grail” of clean energy, with scientists racing for commercialization. It fuses hydrogen isotopes at temperatures hotter than the sun, generating enormous energy. One glass of fuel equals 1 million gallons of oil, powering a home for over 800 years. It produces no radioactive waste and has no risk of accidents like Chornobyl. The US achieved net energy gain in 2022, a breakthrough, but commercialization is expected in the 2040s. Fifty-three companies worldwide have raised $9bn, with Commonwealth Fusion Systems planning a demonstration plant in 2027. Applications include meeting post-2050 power demand growth and powering carbon capture systems.
【10】🦄 Top 100 Incredible Startups: 2025 Edition - Who Are Japan’s Next Unicorns Leading Through Turbulent Times? [10/3 Toyo Keizai Online]
Toyo Keizai’s “Amazing Ventures 100” celebrates its 10th anniversary in 2025, featuring startups poised to transform society. This year’s selection highlights widespread AI application integration, though few develop proprietary AI models. Climate Tech ventures show strong presence, including Helical Fusion’s nuclear fusion power, Planet Savers’ CO₂ DAC technology, Shirokuma Electric’s battery-storage renewable retail, and ultra-compact EVs from Lean Mobility and KG Motors. Deep Tech innovations feature 3DC’s advanced carbon materials, OptQC’s photonic quantum computing, BioPhenolics’ microbial smart cells, and Revolca’s AI enzyme design. Major manufacturers’ executives increasingly join deep tech ventures, indicating greater talent mobility. Companies face bifurcated fundraising and Tokyo Growth Market reforms, requiring enhanced competitiveness for prolonged exit timelines.
📬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)