On March 12, 2021, six regional economic organizations located in western Japan jointly released a statement on Japan’s current energy policy and the goal to achieve carbon neutrality by 2050. The eight economic federation organizations, each consisting of members from various enterprises and other entities, exist nationwide to support local development and business activities. This joint statement was released by the Kansai Economic Federation (Kankeiren, Headquarters: Osaka City, Osaka Pref.), Kyushu Economic Federation (Kyukeiren, Headquarters: Fukuoka City, Fukuoka Pref.), Shikoku Economic Federation (Yonkeiren, Headquarters: Takamatsu City, Kagawa Pref.), Chugoku Economic Federation (Chugokukeiren, Headquarters: Hiroshima City, Hiroshima Pref.), Central Japan Economic Federation (Chukeiren, Headquarters: Nagoya City, Aichi Pref.), and Hokuriku Economic Federation (Hokkeiren, Headquarters: Kanazawa City, Ishikawa Pref.).

This is the first time that the six organizations have jointly provided their recommendations on Japan’s energy policy. Their statement notes that the outbreak of COVID-19 has further underscored the importance of ensuring the stability of the energy supply in Japan. In order for Japan to achieve its short-term goals for its energy mix by 2030, the report highlighted the need for the following actions:

1) Increase the use of nuclear energy by maintaining the nuclear energy supply chain and accelerating the development of next-generation nuclear energy technologies, such as Small Modular Reactors (SMRs)

2) Accelerate the expansion of renewable energy sources, while enhancing public awareness and understanding on the social costs resulting from the deployment of renewable energy

3) Phase out existing coal-fired power plants and promote advanced technologies such as efficiency improvement and carbon capture and utilization storage (CCUS)

Realizing that it will be extremely challenging for Japan to meet its carbon neutrality goal by 2050, the statement recommends that the Japanese government take the following measures:

1) Develop a research & development (R&D) strategy that supports research activities led by the public and/or private sectors on technologies that will contribute to the reduction of CO2 emissions

2) Increase the demand for relevant products/services which contribute to the reduction of carbon emissions in industrial, transportation and consumer sectors by accelerating revolutionary innovations

3) Facilitate the process of low/zero carbonization by utilizing nuclear energy and renewable energy

4) Establish a mechanism to promote open information disclosures which can lead to the appropriate evaluation of Japanese business’ activities

5) Contribute to the reduction of CO2 emissions in the global community

6) Carefully deal with carbon pricing

7) Formulate the domestic and overseas Public Relation (PR) strategies [1]

[1] https://www.kyukeiren.or.jp/files/release/210310023539123.pdf

On January 25, 2021, Daigas Group (Daigas, Headquarters: Osaka), Osaka Gas’s parent company, released its Carbon Neutral Vision (the Vision), as part of its contribution to the national goal of achieving carbon neutrality by 2050.

In the Vision, Daigas underscores the importance of the reduction of CO2 emissions, since technological innovation to achieve carbon neutrality will require significant time and tremendous social costs. The Vision lays out targets to achieve Daigas’ goals and action targets by 2030 as follows:

· Increase its renewable energy deployment to reach a total of 5GW[1] (inside and outside Japan) by developing and owning their energy sources, as well as promoting procurement from others

· Aim to increase Daigas’ renewable energy share to approximately 50% of the company’s domestic energy portfolio

· Reduce annual CO2 emissions from 33 million tons to 10 million tons

Daigas has already contributed to a wide range of research and development activities on the latest technologies, including methanation and hydrogen production technologies. Based on the Vision, Daigas plans to 1) build a hydrogen energy network; 2) decarbonize the CO2 emissions of its gas business by utilizing methanation technology; and 3) reduce the CO2 emissions of its electric generation business by expanding the use of renewable energy. With its new Vision, Daigas will continue to accelerate research and development activities by promoting alliances with various industry-government-academia partner companies.[2]

[1] As of December 2020, the total amount of renewable energy sources that had already been developed was approximately 0.7 GW, including wind, solar, and biomass, both inside and outside Japan.

[2] https://www.osakagas.co.jp/company/press/pr2021/1291446_46443.html