Staying the Course: Japan Doubles Down on GX Amid Global Climate Retreat
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*Editor’s note: This article was originally published on 1/14/2026 on Linkedin.
Welcome to issue 186 of Japan Climate Curation! 📬 I’m Hiroyasu Ichikawa (ichi), curating Japan’s climate news weekly since 2022 for 500+ subscribers on this Substack & [3,100+ on Linkedin].
🎧 Audio versions available: English 🇺🇸 | Japanese 🇯🇵 📺Now on YouTube!
This week’s highlights: GX enters execution mode—record $780B budget approved, Japan’s first commercial floating wind farm launches, and the country commits to climate action despite U.S. Paris withdrawal.
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Disclaimer: Generative AI tools (Gemini, ChatGPT, Claude, NotebookLM) have been used for summary and translation assistance. 🙂
[🇯🇵📰👀Japan Climate News Headlines]
【1】Japan approves record $780 billion draft budget for 2026, ramps up green transition and nuclear spending [01/08 Eco-Business]
Japan’s cabinet approved a record ¥122.31 trillion ($780B) budget for FY2026. METI allocated ¥605B for GX and renewables, including ¥49.7B for perovskite solar cells and ¥12.2B for offshore wind. A new ¥2.1T five-year program will subsidize factories and data centers running on nuclear or renewable power only. The budget includes ¥122B for next-gen nuclear and funding for data center decarbonization and rare metal recycling, advancing Japan’s 2050 net-zero goal.
【2】Japan to stay the course on fighting climate change despite U.S. exit [01/13 The Japan Times]
Following President Trump’s order to withdraw from the UN Framework Convention on Climate Change (UNFCCC) and the Intergovernmental Panel on Climate Change (IPCC), Japan’s Environment Minister Hirotaka Ishihara affirmed the country will maintain its 2050 net-zero emissions target. He emphasized Europe’s continued strong commitment to climate action, making environmental compliance essential for businesses operating there. Experts warn the U.S. withdrawal strengthens China’s leadership in green technology and supply chains, while funding cuts may trigger a brain drain of American climate scientists, creating opportunities for Japan to attract their expertise.
【3】JERA on track for 20% ammonia co-firing at Hekinan coal power plant in FY29 [01/13 Reuters]
JERA, Japan’s largest power generator, targets world’s first commercial 20% ammonia co-firing at 1-GW Hekinan coal unit by FY2029. Ammonia emits no CO2 when burned, key to Japan’s decarbonization. Partners with CF Industries and Mitsui on $4B Louisiana project for 490,000 tons/year low-carbon ammonia. 15-year government subsidy covers cost gap. Despite global energy transition slowdown, continues decarbonization toward 2050 net-zero, eyeing extension to other units and over 50% co-firing.
【4】Japan Will Build World’s Largest Liquefied Hydrogen Carrier [01/06 The Maritime Executive]
Japan will build the world’s largest liquefied hydrogen carrier with a 40,000 cubic meter capacity, constructed by Kawasaki Heavy Industries. The 250-meter vessel, scheduled for demonstration voyages by 2030, features pioneering technology including advanced insulation systems to minimize boil-off gas and utilizes generated BOG as propellant. A world-first commercial-scale liquefied hydrogen terminal with a 50,000 cubic meter storage tank is under construction in Kawasaki City’s Ogishima. Supported by NEDO’s Green Innovation Fund with approximately $2 billion budget, this project demonstrates Japan’s entire hydrogen supply chain infrastructure as the nation transitions from coal-fired energy plants toward establishing a new renewable energy import business.
【5】Chubu Electric’s data fraud ‘undermines’ Japan’s nuclear energy policy [01/10 The Japan Times]
Chubu Electric Power’s data fraud concerning earthquake risks at the Hamaoka nuclear plant has forced safety screenings of reactors 3 and 4 back to square one, according to Nuclear Regulation Authority chief Yamanaka. This undermines Japan’s energy policy shift to maximize nuclear power use and raise its share to 20% by 2040. Achieving this requires increasing operating reactors from 14 to over 30. However, the fraud erodes public trust and makes obtaining local consent for future restarts increasingly difficult. Chubu Electric expected ¥250 billion annual profit improvement from Hamaoka restarts, but the delay will significantly impact earnings. The company has also withdrawn from offshore wind projects, hampering decarbonization efforts.
【6】Japan to let private sector use 3 nuclear fusion R&D sites [01/12 Nikkei Asia]
The Japanese government will open three national nuclear fusion R&D facilities to private companies from fiscal 2026: National Institutes for Quantum Science and Technology National Institute for Fusion Science Osaka University’s Institute of Laser Engineering
As fusion attracts global attention as a CO2-free decarbonization technology, Japan has chosen public-private collaboration to efficiently use limited resources, contrasting with the U.S.’s private-sector-led approach and China’s government-led massive facilities. Companies will cover consumables and electricity costs, while the government handles maintenance expenses. Personnel exchanges are also planned. Aiming to demonstrate fusion power generation in the 2030s, Japan seeks to accelerate commercialization through early private-sector participation.
【7】Toyota beats Nissan to top quarterly EV sales in Japan for 1st time [01/09 Nikkei Asia]
Toyota led Japan’s Q4 2024 EV sales with 3,684 units, its first quarterly top ranking. Nissan dropped to second with 2,857 units (down 56%) after 15 years leading. Toyota’s upgraded bZ4X with free charging drove the 13-fold increase, while Honda hit a record 2,732 units. All three Japanese automakers surpassed Tesla (~2,600 units) for the first time. Despite Japan’s 1.9% EV share—lowest among advanced economies—transformation is accelerating. Government subsidies up to ¥1.3M enable Suzuki’s e Vitara to reach ¥2.7M post-subsidy, approaching gasoline pricing. BYD plans a mini EV this summer, intensifying competition in Japan’s awakening EV market.
【8】Japan’s offshore wind sector: Down but not out [01/09 Institute for Energy Economics & Financial Analysis]
Mitsubishi withdrew from three offshore wind projects in August 2025 after costs doubled, but Japan’s sector persists. Government reformed auctions: 40% inflation reflection 20-year revenues for zero-premium projects
Round 2-3 development continues with JERA and Mitsui proceeding. June 2025 EEZ law opened new areas with deeper waters. Strengthening domestic supply chains crucial—70% of costs align with Japan’s industrial strengths in steel, fabrication, and shipbuilding.
【9】How Japan’s warming seas are affecting livelihoods and culture [01/11 The Japan Times]
Japan’s seas are warming at over twice the global average rate, rising 1.33°C in 100 years. Waters off Tohoku show 6°C increases (10°C below surface). Fish are migrating north—amberjack to Hokkaido, hairtail from Osaka to Chiba. Hokkaido’s 2025 salmon catch dropped to 1/5 of 2022 levels. Traditional cultures like Izu’s tengusa harvest are vanishing. Businesses adapt through new species and aquaculture, but experts warn of unpredictable changes beyond current models.
【10】Battery recycling key to further spread of EVs in Japan [01/10 The Japan Times]
As EVs gain popularity in Japan, battery recycling becomes crucial. Used EV batteries are valuable “urban mines” containing rare metals. However, over 80% of Japan’s approximately 110,000 used EVs as of 2024 were exported overseas with batteries, losing rare metals worth ¥17.5 billion. Panasonic Energy and Sumitomo Metal Mining launched a recycling project, but commercialization faces challenges. Japan Automobile Manufacturers Association chairman and Toyota president Koji Sato calls for industry cooperation, while local governments are taking action. Experts emphasize establishing battery recycling as a national strategy.
📬 That’s a wrap for this week! Thank you for reading.
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