Japan Sets Ambitious Climate Goals Amid Energy Challenges

Japan is poised to submit its revised Nationally Determined Contribution (NDC) to the United Nations this month, marking a significant step in its commitment under the Paris Agreement. The Japanese government has approved an ambitious plan to cut the nation's greenhouse gas emissions by 60 percent from 2013 levels by 2035, with a further reduction goal of 73 percent by 2040. This initiative comes as part of a broader strategy integrating decarbonisation with industrial policy, which aims to revolutionize the country's energy landscape by 2040.

The move is crucial for Japan, the world's fifth-biggest carbon emitter, as it grapples with challenges in its energy sector. Since the 2011 Fukushima disaster, Japanese utilities have faced difficulties restarting nuclear reactors, resulting in nuclear power contributing only 8.5 percent to the country's electricity supply in 2023. However, under the new energy policy, nuclear power is expected to account for 20 percent of Japan's electricity mix by 2040. In tandem, the plan outlines an increase in renewable energy sources, targeting a 50 percent share of the electricity mix by the fiscal year 2040.

The domestic offshore wind market is a critical component of Japan's renewable energy growth. However, it faces significant challenges due to inflation and high costs. Mitsubishi Corporation, a major player in the industry, has reviewed three of its offshore wind projects because of these market conditions. Despite these setbacks, the government's commitment to renewables remains strong.

Japan's climate ambitions also face external challenges. The United States' withdrawal from the Paris Agreement and its subsequent stance on renewable energy have complicated Japan's efforts to expand its global reach in this sector. Nonetheless, Japan continues to push forward with its environmental agenda, supported by strong public backing. Over 80 percent of 3,000 public comments advocated for more ambitious emissions reduction targets.

The environment and industry ministries finalized Japan's new emissions-cutting goal without alterations, emphasizing the thorough deliberations conducted by climate experts. By setting a target to cut emissions by 46 percent by 2030, Japan is aligning itself with global efforts to combat climate change while also addressing domestic energy needs.