1.6 trillion yen ($10.7 B) will be allocated for industry decarbonization

Welcome! I am Hiroyasu Ichikawa, ichi, and this is issue 91 of the "Japan Climate Curation" newsletter??, which curates Japan-related climate news content every week since spring 2022, with over 2,120 subscribers. You can subscribe by clicking on the Linkedin page or the substack link.

I hope you find the articles below beneficial for reading (or skimming)!

*Consulting Service is available for your Japan-related climate or net-zero business. The first 30 minutes of Zoom chat is free, and I could work at an hourly rate starting at $100. Please fill out your request using this link. Thank you!

[????????Japan Climate News Headlines]

【1】1.6 trillion yen ($10.7 B)support for GX bonds, hydrogen steel-making by Nippon Steel and EV battery development by Honda [2/4 Nikkei Newspaper]

• The Japanese government plans to support decarbonization through newly issued national bonds, aiming to raise 1.6 trillion yen in the first fiscal year. These funds will be allocated to developing hydrogen steel-making technologies and expanding production of electric vehicle (EV) batteries, with significant amounts directed towards Nippon Steel and Honda, among others. This initiative, part of a broader 20 trillion yen issuance over ten years, seeks to enhance Japan's industrial competitiveness by investing in crucial technologies that will shape the future of the industry and contribute to achieving carbon neutrality by 2050.

【2】Japan's hydrogen prowess in peril as China, U.S. and EU poised to overtake - Policy action in coming months to determine whether green tech can avoid solar, battery missteps [2/6 Nikkei Asia]

• Japan risks being surpassed in hydrogen technology by the EU, U.S., South Korea, and China due to slow commercialization efforts, despite pioneering hydrogen energy research and development.
• The global clean hydrogen market is expected to exceed the value of LNG trade by 2030 and reach $1.4 trillion annually by 2050, emphasizing the need for Japan to enhance its hydrogen strategy.
• Japan's government is initiating incentives for domestic businesses in hydrogen technology, but faces stiff competition as other countries rapidly develop their hydrogen policies and technologies.

【3】Japan's Gas Imports Plummet as Nuclear Reactors Restart [2/2 Bloomberg]

• Japan's January LNG imports have significantly dropped due to nuclear restarts, renewable energy increases, and energy conservation, marking a notable shift from post-Fukushima dependency on gas.

【4】China overtakes Japan in auto exports with boost from EVs - Japan loses crown for 1st time in seven years amid BYD's rise [2/1 Nikkei Asia]

• China overtakes Japan as the top auto exporter in 2023, fueled by booming EV sales and companies like BYD surpassing Tesla. Government support and strategic expansions aim to solidify China's global auto industry dominance.

【5】Opinion: The World’s Biggest Car Company Has Blurred Vision [2/1 Bloomberg]

• Toyota retains the title of the world's largest carmaker but lacks a clear strategy for future success.
• Scandals over safety test irregularities and emissions falsification have tarnished its reputation.
• Decentralizing power contradicts the need for stronger standards and compliance; Toyota lacks a clear plan for addressing regulatory issues and transitioning to new-energy vehicles.

【6】Opinion:Rural Japan needs EVs to stay connected - Ultracompacts and self-driving buses would help residents to better get around [2/3 Nikkei Asia]

• Japan needs to address its rural mobility crisis by supporting ultracompact EVs and enhancing EV infrastructure to meet the needs of its aging population and climate goals.

【7】Interview: Let's get real about EVs' environmental impact, rare metal expert says - Decades needed to find cost-effective clean energy tech: Tokyo University's Toru Okabe [2/2 Nikkei Asia]

• Electric vehicles (EVs) help lower CO2 emissions but their production involves environmentally harmful extraction of rare metals, highlighting a need for balance between eco-friendliness and cost.

【8】Zinc batteries eyed by Sharp as cheaper alternative to lithium-ion - Japanese battery maker FDK also developing products using the metal [2/3 Nikkei Asia]

• Sharp and FDK develop zinc-based batteries as cheaper, longer-lasting alternatives to lithium-ion, harnessing zinc's abundance and advances in technology to potentially revolutionize energy storage.

【9】Investors in Japan Drain $4.5 Billion as They Exit ESG Funds [2/1 Bloomberg]

• Japanese retail investors are shifting away from ESG (Environmental, Social, and Governance) mutual funds, with a significant outflow of 660 billion yen ($4.5 billion) in the last year, marking a stark contrast to the 150 billion yen outflow in 2022 and the inflow of 1.8 trillion yen in 2021. This trend reflects a broader interest in mutual funds with specific investment themes over sustainability goals. Despite this, overall mutual fund investments have seen more inflows than outflows. The industry's growth is impacted by the lack of new ESG product launches in recent months, and analysts foresee a continued decline in interest towards ESG funds among retail investors.

【10】Japan earthquake survivors battle unsanitary conditions with no running water [1/31 Reuters]

• Japan's earthquake survivors endure harsh conditions without water, risking infections, with over 230 dead and thousands in evacuation centers. Authorities start flu vaccinations.

*Event info. Moral Money Summit Japan [Financial Times event on 2/8 in Tokyo] -I will be there. Please let me know if anyone planning to attend??.

??That's all for this week! Thank you for reading(or skimming) ??. I hope you will have a wonderful week ahead!

*Consulting Service is available for your Japan-related climate or net-zero business. The first 30 minutes of Zoom chat is free, and I could work at an hourly rate starting at $100. Please fill out your request using this link. Thank you!

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ichi (Hiroyasu Ichikawa)