Japan's Renewable Promise Clashes with Fossil Fuel Pivots as Grid Crisis Surge
Japanese Public Backs Decarbonization at 89% While Tokyo Gas Pivots to Shale Gas; Power Crisis Looms as Innovation Accelerates.
*Editor’s note: This article was originally published on 11/05/2025 on Linkedin.
🎧🗣️Audio Versions of this newsletter are available thanks to NotebookLM
In English🇺🇲: Japan Climate Curation vol. 177 [5:16 min.]
In Japanese🇯🇵: Japan Climate Curation vol. 177 [10:52 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. 182 audio summary in English [5:50 min.]
🇯🇵Climate Curation vol. 182 音声概要 [7:40 min.]
Welcome! I'm Hiroyasu Ichikawa, ichi, and this is issue 177 of the "Japan Climate Curation" newsletter📬, which has been curating hand-picked Japan-related climate news content every week since spring 2022, with over 480 subscribers [ more than 3,020 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)!
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】
Japanese Public Backs Decarbonization at 89% While Tokyo Gas Pivots to Shale Gas; Power Crisis Looms as Innovation Accelerates. Energy storage joint venture targets 20-megawatt capacity nationwide; Superworm Inc achieves 10-fold efficiency gains in insect-derived biofuel. Japanese automakers intensify multi-pathway R&D to challenge Chinese competitors. LNG utilities confirm supply diversification amid Russia sanctions. Yet contradictions deepen: Tokyo Gas redirects $2.3 billion away from renewables despite public mandate; summer power reserves plunge to 0.9% as thermal plants close; adaptation finance blurs climate objectives with infrastructure priorities, revealing tensions between energy security, profitability, and decarbonization goals.
*Disclaimer: Generative AI tools such as Claude Haiku 4.5 and NotebookLM have been used for summary and translation assistance. 🙂
[🇯🇵📰👀Japan Climate News Headlines]
【1】🔄 Tokyo Gas Pivots Away From Renewables, Commits $2.3B to US Shale Gas [10/30 Nikkei Asia]
Tokyo Gas has announced a new medium-term business plan that scraps renewable energy targets and redirects $2.3 billion over three years toward U.S. shale gas and LNG development. The company aims to reduce Australian LNG dependence by securing stable supply from American sources. Simultaneously, it raises the dividend payout ratio from 40% to 60%, prioritizing shareholder returns. Citing uncertain profitability in offshore wind and synthetic methane projects, Tokyo Gas is shifting investment priorities from decarbonization to profitable U.S. natural gas assets, signaling a clear strategic reorientation toward profitability over climate goals.
【2】⚡ J-Power Decommissions Coal Plants, Reaffirms Offshore Wind Commitment [11/1 Reuters]
Japan’s Electric Power Development (J-Power) announced plans to decommission units No.1 and No.2 of Takasago thermal power station (250MW each) by March 2029 to achieve its 2030 carbon emission reduction target (46% below 2013 levels). The company reaffirmed commitment to the Oga-Katagami-Akita offshore wind project, targeting autumn 2028 completion. Balancing rising electricity demand from data centers and semiconductor plants with decarbonization goals remains challenging. J-Power pursues this strategy despite global headwinds from rising construction costs, aiming to deliver both carbon neutrality and energy security.
【3】🔌 Tokyo Faces Critical Summer Power Shortage With Supply Deficit [11/1 Nikkei Asia]
Tokyo faces a critical summer power shortage as aging thermal plants shut down and no nuclear reactors operate post-Fukushima. Reserve margins will drop below the safe 3% threshold, reaching just 0.9% in August with a 2.56GW supply deficit. Authorities plan to import power from other regions and increase thermal plant operations. However, Japan’s heavy dependence on aging fossil fuel infrastructure and security concerns over Russian fuel supplies underscore the urgency of transitioning to renewable and nuclear energy.
【4】🔋 Samsung and Erex Launch Joint Energy Storage Venture Nationwide [11/4 Nikkei Asia]
Erex and Samsung C&T will establish a 50-50 joint venture to develop energy storage infrastructure nationwide in Japan. The venture plans to construct battery systems exceeding 20 megawatts to address renewable energy output fluctuations. Combining Erex’s power-trading expertise with Samsung C&T’s infrastructure development and finance capabilities, the partnership will commence with a co-investment in a 2-MW storage project in Miyazaki Prefecture. The business model leverages knowledge to sell stored electricity at premium prices during peak demand periods.
【5】📊 Nine in Ten Japanese Express Climate Change Concern [11/3 NHK]
A Cabinet Office survey on climate change awareness reveals that 92% of respondents show concern about climate-related issues. The nationwide survey targeted 3,000 residents aged 18 and above, with 1,766 people (59%) providing responses. Support for achieving a decarbonized society is equally robust at 89%, reflecting strong public commitment. Regarding lifestyle changes, purchasing products from climate-conscious companies ranks highest at 26%, followed by buying energy-efficient appliances at 23%.
【6】🌊 Japanese Utilities Confirm LNG Supply Diversification Strategy [10/31 Reuters]
Amid U.S. pressure to halt Russian energy imports, major Japanese LNG utilities—JERA, Tohoku Electric Power, and Kyushu Electric Power—stated they can secure alternative supplies if Sakhalin-2 flows are interrupted. The project accounts for roughly 9% of Japan’s total LNG imports. The companies are advancing supply diversification strategies through spot market purchases, trading, and accelerated delivery from existing contracts. Japan’s government has also conveyed implementation difficulties to the Trump administration.
【7】Business-as-usual: Donors pour climate adaptation finance into big infrastructure, neglecting local needs [10/30 Climate Home News]
Japan’s $726 million concessional loan for a deep-sea port in Bangladesh is counted as “climate adaptation finance,” yet it directly harms 800,000 people and displaces fishermen. The project—the world’s largest single adaptation-funded infrastructure in 2023—sits adjacent to a coal plant (7 million tons CO2 annually), exemplifying how wealthy donors relabel infrastructure investment as climate finance. Over one-third of Japan’s adaptation funding flows to large-scale projects lacking clear climate objectives. The case reveals critical gaps in international transparency and accountability in climate finance allocation.
【8】Asia Zero Emissions Community Tracker Maps 150+ Decarbonization Initiatives [10/28 Zero Carbon Analytics]
AZEC Tracker is a comprehensive project portfolio platform launched at the 2nd AZEC Leaders Summit in October 2024, covering over 150 decarbonization initiatives across ASEAN member states and international organizations. Projects span carbon accounting software, hydrogen and ammonia development, CCS technologies, renewable energy, and bioenergy. Initiatives range from early-stage collaborations to active project execution, with Japan playing a leading role in driving clean energy technology deployment across the region.
【9】🪱 Japanese Startup Achieves Breakthrough in Superworm-Based Biofuel [11/2 Nikkei Asia]
Superworm Inc., a startup based in Saito, Miyazaki, is leveraging large mealworm larvae cultivated in cargo containers for biofuel production. The company has achieved 10 times greater efficiency than traditional methods, with extracted oil applicable to sustainable aviation fuel and biodiesel. Targeting 100,000 tons of production by 2027, the company aims to realize biofuel costs below 100 yen per liter, making them more affordable than fossil fuels.
【10】🚗 Japanese Automakers Intensify R&D as Chinese Competitors Accelerate [10/30 Nikkei Asia]
Japan’s seven major automakers are intensifying R&D investments, which reached 3.87 trillion yen in fiscal 2024, a 50% increase over a decade. They are pursuing a “multi-pathway” strategy, developing diverse drive systems including EVs, hybrids, and hydrogen engines. However, Chinese competitors like BYD are rapidly catching up, with R&D spending now rivaling Honda’s level. Japanese carmakers are strengthening AI and software development while pursuing global partnerships to maintain competitiveness in an increasingly intense automotive market.
📺Japan Mobility Show turns spotlight on affordable EVs [10/31 NHK World] EV makers are showcasing affordable models they hope will energize sales in Japan, a market that has been slow to make the switch to electric cars.
📬That's all for this week! Thank you for reading(or skimming) 🙇. I hope you will have a wonderful week ahead!
Did you 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 theLetter.
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ichi (Hiroyasu Ichikawa)