News
Carbon Sequestration
Mitsui & Co. plans to secure sites in the Asia-Pacific region and other areas to store carbon dioxide produced at Japanese factories and power plants, with plans to obtain rights for storing 15 million tonnes yearly by 2035. After securing sequestration rights, Mitsui intends to debut a carbon capture and storage (CCS) service for Japanese companies and others as early as 2030. By offering a comprehensive service that includes carbon capture, transportation and storage, the trading house seeks to help Japanese companies reduce greenhouse gas emissions.
Climate Policy
Japan’s environment ministry launched the Paris Agreement Article 6 Implementation Partnership on 16 November. The partnership aims to complement Article 6 by building a platform for countries to share knowledge and experiences on carbon markets and their links with Nationally Determined Contributions (NDCS). Although the Article 6 “rulebook” was finalized at Cop 26 last year, there are still unresolved issues around mechanisms to implement it.
【VIEW】
https://www.argusmedia.com/en/news/2392469-cop-27-japan-launches-article-6-partnership
Renewable Energy
Canadian Solar Inc. announced that its Japan flagship mega-project, the 100 MWp Azuma Kofuji solar project located in the Fukushima Prefecture, recently reached commercial operation. This project is Canadian Solar’s largest project in Japan and Fukushima Prefecture’s largest operational solar project to date. It is powered with Canadian Solar high efficiency HiKu modules. Canadian Solar’s local subsidiary will perform the long-term operations and maintenance of the power plant.
Decarbonization Day
In the opening session of Decarbonization Day, Commissioner for Infrastructure, Energy and ICT of the African Union (AU) Amani Abu Zeid said that climate change is costing Africa $50-80 billion a year, and he mentioned a $500 million climate change investment to accelerate a fair and equitable energy transition. The conference then discussed decarbonisation by industry sector, focusing on the views of the oil and gas, cement, fertilizer and steel sectors on matters such as green technology and international cooperation.
【VIEW】
https://www.jetro.go.jp/biznews/2022/11/59e085949988aa35.html
Japanese and Indonesian Governments
On November 14th, the Japanese and Indonesian governments agreed to promote a new initiative to support the decarbonization transition in Asia through the Japanese public and private sectors. First, up to $500 million (approx. 70 billion yen) in loans will be provided to Indonesia for the introduction of renewable energy and the strengthening of its power transmission and distribution network. This is in response to concerns about a shortage of funds in Asian countries, which have begun to take decarbonization initiatives in earnest. Prime Minister Fumio Kishida, on a visit to Indonesia, met with Indonesian President Joko on November 14th and announced the agreement.
【VIEW】
https://www.nikkei.com/article/DGXZQOUA143RN0U2A111C2000000/
【Renewable Energy】Japan’s Changing Nuclear Energy Policy
On August 24, 2022, the Japanese government announced a new nuclear energy policy. The framework for this new policy consists of three key points: maximize the use of existing nuclear power plants through an accelerated restart and extension of their operation period; develop and build advanced next-generation reactors; and develop conditions suitable for the use of nuclear energy, including back-end support. The second point of the new policy is the most contentious one because of the Fukushima nuclear disaster. However, the feasibility of it remains unknown because of numerous unsolved issues. For instance, restarting nuclear power plants requires permission from the Nuclear Regulation Authority and the agreement of local communities. It also remains a question whether nuclear power can maintain competitiveness in a deregulated market. Moreover, cleanup for the nuclear energy policy that the government has pursued over the past 50 years remains unsolved.
【VIEW】
https://thediplomat.com/2022/11/japans-changing-nuclear-energy-policy/
Perspectives
Energy-saving Behavior 【The Japan Times】
Tokyo Gov. Yuriko Koike encouraged residents to don turtle neck jumpers both to stay warm and as a way of reducing energy consumption. She suggested that warming the neck has a thermal effect because it not only keeps warm the person that wears it, but also other people. It will eventually lead to fewer people turning on the heat or air conditioning and thus saving electricity.
Net-zero Emission 【Japan Today】
A group of UN experts set out a number of strict recommendations for businesses, banks, and local governments making net zero pledges to ensure that their promises amount to meaningful action instead of “bogus” assurances. They called the report a roadmap to prevent net zero from being “undermined by false claims, ambiguity and ‘greenwash’”.
【VIEW】
https://www.asahi.com/ajw/articles/14764569
Decarbonisation claims 【Agora】
Companies are not the only ones to blame for the proliferation of false carbon emission reduction claims. As can be seen in the messages of those companies that have made such statements, they clearly state that the Japanese government’s 46% reduction in carbon emissions by 2030 is a necessary precondition, and that this implies a 46% reduction in the CO2 emission factor of purchased electricity. Even those companies that do not publicly publish such information assume a low-carbon transition in power generation in their internal carbon emissions calculations, as some factors are not destined to be reached by the company’s own efforts.
【VIEW】
https://agora-web.jp/archives/221115031723.html
Voice of Youth 【World Economic Forum】
The fact that the new generation will be the most affected by climate change, yet policy decision-makers are much older, creates a huge gap in the mindset. A survey of 6,800 consumers aged 15-69 in Japan about attitudes toward sustainability found that many consumers of all generations are open to paying a premium for sustainable products. Generation Z have the highest tolerance for paying more, with 20% that would consider paying double. Furthermore, Youth Climate Conference Japan has exchanged views with the government, major political parties, Japan Business Foundation, and has made the voices of young people visible in the form of policy proposals such as the regulation of plastic packaging and compulsory emissions labeling on food by 2025.
【VIEW】
https://www.weforum.org/agenda/2022/11/japan-youth-climate-change/
https://jp.weforum.org/agenda/2022/11/jp-japan-youth-climate-change/（日文版链接）
Interpretations
【Green Transformation】Investors wary of greenwashing in Japan’s $140 billion bond plan
Prime Minister Fumio Kishida’s “green transformation economic transition bond”, due to its ambiguous name and a lack of details, is sparking concerns among investors increasingly wary of greenwashing. Some experts pointed out that the concept of “Green transformation” is too broad. It is true that the demand for green debt is surging, whereas investors are applying more rigorous scrutiny to financial products that exaggerate their environmental benefits. Failure to address the issue could discourage investors and make it difficult for Japan to raise the money needed to meet its climate goals.
【VIEW】
https://www.japantimes.co.jp/news/2022/11/18/business/greenwashing-bond-plan/
【Carbon Tax】Japan Delays Carbon Tax Reform to Curb Living Costs, Nikkei Says
Japan is delaying plans to revise how it taxes carbon. The government will postpone the introduction of a new carbon tax that was planned for the fiscal year starting April 2023 as it would add to already surging living costs. It’s at least the second time the changes have been pushed back because of the protests from various industries. There hasn’t been any releasing of the details on the level of the new tax.
【Low-carbon Energy】Carbon Neutrality: Yokohama shifting towards biofuel
Yokohama city’s progressive industrial area is gathering companies that have sympathy for their decarbonization policy, and Euglena, a main constituent of Yokohama’s biofuel organization, is one of the many companies. It established a promotional plant to produce bio jet fuel and biofuel for diesel engines from algae and abolished the use of cooking oil. Euglena is currently receiving subsidies in accordance with Yokohama City’s Corporate Location Ordinance as Yokohama City is an “SDGs Future City” and it is very active in SDGs.
【Renewable Energy】Nuclear energy, effective decarbonization – IAEA to promote nuclear energy and set up an exhibition booth for the first time at the COPs
The International Atomic Energy Agency (IAEA) has set up a booth on the use of nuclear energy at COP27, the first time the IAEA has had a booth at the Conference of the Parties. According to Japanese officials, the reason nuclear power has not been discussed in the past is because there is a possibility that it can result in troublesome problems that are complicated to deal with. However, influenced by today’s world situation, the supply of natural gas has become unstable and the proportion of coal-fired power generation has increased significantly. To solve this problem, nuclear power is brought up again, and is considered a major means of reaching the net-zero emissions goal for 2050.
【VIEW】
https://www.yomiuri.co.jp/economy/20221117-OYT1T50011/
【Energy-saving Technology】Branding “decarbonization” – why are companies eager to get involved?
In Japan, many companies are trying to decarbonize their own chains and are trying to launch decarbonized products. Daihatsu Industries, Ltd. has introduced robots into its production process, and its use of electrostatic painting technology has greatly reduced the amount of paint in the air, thus reducing CO2 emissions; Hitachi, Ltd. has reduced CO2 emissions by recreating the real world in virtual space – using electric power sensors to visualize power consumption. Panasonic has conducted a demonstration experiment at its plant that combines hydrogen-generated fuel cells, solar power and energy storage cells to convert 100% of the energy consumed at the plant into renewable energy; and sake brewing company Kobe Shushinkan has introduced a sake that emits almost no carbon dioxide during the brewing process.
【VIEW】
https://www.sankei.com/article/20221119-QPD7GFAXWRNWZK4KXFIFDCPVSM/
【Climate Finance】Unlike the US, Japan is paying more than its fair share of climate finance. But at what price?
Given that the US is responsible for more than half of the historical emissions unleashed by richer countries, it should have given $39.9 billion (€38 bn), according to data from Carbon Brief. At the other end of the spectrum, Japan gave $7.9 billion (€7.6 bn) more than its fair share of historical emissions. However, 86% of Japan’s climate investment is in the form of loans, and many developing countries believe that developed countries are responsible for the climate crisis, so developed countries should compensate developing countries for their losses in the form of grants rather than loans. The “loss and damage” fund, the third category of climate finance introduced at COP27, has been the subject of tit-for-tat discussions between developing and developed countries. Japan, as a major economic power, has taken a more cautious approach to this new financing mechanism. Japan’s foreign minister noted that Japan is sympathetic to the appeals of developing countries and is already providing substantial humanitarian assistance, but that the “loss and damage” fund is without doubt, more favorable to those developing countries. This bias is questionable in Japan’s view, given that Japan itself is suffering from the climate crisis.