[Japan] Japanese energy minister says nuclear critical to hitting 2050 net zero goal

In an interview with the Financial Times published on February 1, 2021, Japan’s Minister for economy, trade, and industry Hiroshi Kajiyama said nuclear power will be crucial for meeting Japan’s energy goals and that the energy shortages this winter have helped to shift public debate over the nuclear sector.[1] In October 2020, Prime Minister Yoshihide Suga announced that Japan will aim to be net-zero emissions by 2050. Analysis by the Ministry of Economy, Trade and Industry (METI) has found that it will be hard to supply more than 60% of Japan’s electricity needs from renewables. The country’s lack of flat empty land for solar panels and its deep oceans that raise the cost of offshore wind “mean it is not as easy to introduce renewables as in Europe or North America,” said Kajiyama.

Prior to the 2011 Fukushima disaster, Japan's nuclear generating capacity provided around 30% of the country's electricity. However, most of Japan’s nuclear generation has laid dormant pending regulatory change and just 9 of the country’s 33 operable reactors have been restarted. Another 16 reactors have applied to restart and two reactors under construction are under review, but opinion polls show continuing opposition to the industry. Kajiyama, who has previously worked in the nuclear industry, said, "Personally, I think nuclear power will be indispensable." Kajiyama described Japan’s electricity supply as “touch-and-go” during heavy snowfall in January 2021, saying, “Solar wasn’t generating. Wind wasn’t generating.” The issue in a portion of customers experiencing high electricity bills due to tight energy supplies in the country and the subsequent soaring wholesale power market prices. “I’m trying to persuade everybody that in the end we need nuclear power,” he said.

[1] https://www.ft.com/content/47b189de-bb5e-409b-87b9-86405661fc03

[USA] National Academies report maps path to zero-carbon goal

On February 2, 2021, the National Academies of Sciences, Engineering and Medicine (NASEM), a private, nonprofit organization of researchers, released a report that provides a road map for achieving a carbon-free economy by 2050.[1] The report estimates that by decarbonizing, the U.S. economy could add 1-2 million jobs and Americans could be paying roughly the same share of income for energy as they do today due to declining costs for technology. The report notes that the road map is "technologically feasible… But it is on the edge of feasibility” and that the plan may not be as feasible politically.

Under the road map, direct federal budget support for clean energy would total $350 billion over 10 years. The report identified 5 technology goals: 1) get to 75% of energy from non-carbon emitting sources by 2030, 2) reduce energy use by new buildings by 50% by 2030, 3)50% of new vehicle sales to be zero-emission vehicles by 2030, 4) increase transmission capacity by about 40% by 2030, and 5) triple federal investment in research development, and demonstration (RD&D) of emerging technologies such as advanced nuclear reactors, carbon capture and sequestration, and hydrogen fuel. The report also proposes policy actions necessary to benefit affected communities, workers hit with job losses, and lower-income families. The report proposes a federal green bank which could provide funding for economic redevelopment. The report also recommends the adoption of a $40 per ton carbon tax, increasing by 5% annually, with rebates to protect lower income customers.

[1] https://www.nap.edu/resource/25932/interactive/index.html#tech-goals

[Japan] Keidanren Provides Comments on Japan’s Long-Term Growth Strategy under the Paris Agreement

Japan’s Ministry of Environment released a draft Long-Term Growth Strategy under the Paris Agreement on April 25, 2019. The released plan sets goals for industry and transportation sector to reduce CO2 emissions and achieve carbon neutral society. It aims to expedite the research and development of innovative renewable energy; promote novel financing of Environmental, Social, and Governance (ESG) and green investment; and facilitate international cooperation on green policies.[1] The Ministry sought public comments on the draft strategy from April 25th to May 16th, 2019[2].

On May 16, 2019, Japan Business Federation released its comments on the strategy. Japan Business Federation, also known as Keidanren, is an economic organization that represents a membership comprised of 1,376 domestic companies, 109 nationwide industrial associations and 47 of Japan’s regional economic organizations.[3]

Keidanren’s recommendations for the Long-Term Growth Strategy are for Japan to take a flexible approach toward its carbon reduction goal of 80% by 2050, which Keidanren views as an ambitious, long-term goal. Keidanren agreed with the Long-Term Growth Strategy on the importance of facilitating energy transformation through ensuring a balance of ‘Safety + Energy Security, Economy, and Environment (S+3E)’. However, Keidanren emphasized that it hopes that Japan will continue to use nuclear power and high efficiency thermal power alongside the development of next-generation transmission and distribution networks.  

In its comments, Keidanren opposes the implementation of carbon pricing, such as carbon taxes and emission trading, arguing that it is necessary to hold professional and technical discussions regarding carbon pricing, based on the impact on the industry. Keidanren is concerned that carbon pricing will weaken Japan’s competitiveness due to the higher energy costs, and that carbon pricing may disrupt innovation by diverting investments from R&D.[4]

[1] https://www.env.go.jp/press/files/jp/111437.pdf

[2] https://www.env.go.jp/press/106752.html

[3] https://www.keidanren.or.jp/profile/pro001.html

[4] http://www.keidanren.or.jp/policy/2019/043.html

[USA] “Xcel Energy Aims for Zero-Carbon Electricity by 2050”

[Xcel Energy, 4 December 2018]

Xcel Energy has announced their intention to achieve a zero-carbon electricity mix by 2050. On the way towards this goal, Xcel will reduce CO2 emissions 80% by 2030 (from 2005 levels). Xcel’s vision is the most ambitious within the electricity industry so far. Xcel does note, however, that it’s 2050 goal requires the integration of technologies that are not cost-effective/commercially available today. For this reason, the utility is focused on the development of advanced technologies and encouraging policies that aid this technological growth. Ben Fowke – Chairman, President, and CEO of Xcel Energy – stated, “This is an extraordinary time to work in the energy industry, as we’re providing customers more low-cost clean energy than we could have imagined a decade ago. We’re accelerating our carbon reduction goals because we’re encouraged by advances in technology, motivated by customers who are asking for it and committed to working with partners to make it happen.”