??Carbon credit trading kick-off / challenging EV shift / vision of 100% renewable future

Welcome! I'm Hiroyasu Ichikawa, ichi, and this is issue?76?of "Japan Climate Curation" newsletter??, which curates Japan-related climate news content every week since spring 2022, with over 1,800 subscribers. You can subscribe by clicking on the?Linkedin page or the substack link .

Ten news articles were curated this week, covering carbon credit trading kick-off, vision of 100% renewable future, challenging EV shift, and more.

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】Explainer: Japan's carbon pricing scheme kicks off at Tokyo Stock Exchange [10/11 Reuters]

• The Tokyo Stock Exchange (TSE) has initiated the trading of carbon credits as part of Japan's strategy to combat climate change.
• This carbon pricing scheme combines emissions trading and a carbon levy, aiming to accelerate decarbonization efforts and maintain the competitiveness of industries like steelmaking.
• The Japanese government estimates a need for over 150 trillion yen ($1 trillion) in decarbonization investments over the next decade, partly funded through carbon levy revenue and emission allowances. The emissions trading system will involve emissions allowances and targets for companies, while a carbon levy on fossil fuel importers will be introduced gradually from around 2028/29.

【2】Japan has serious work cut out with carbon cutting ambitions [10/12 Reuters]

• Japan unveiled a carbon credit system to tackle climate change, targeting a 46% emissions reduction by 2030 and carbon neutrality by 2050. However, post-Fukushima nuclear constraints, heavy fossil fuel dependence, and lagging electric vehicle adoption pose significant hurdles to achieving these goals.
• Japan electricity generation by source 2000-2022

• Japan's industrial carbon intensity has declined by the least among major economies since 2010

【3】Videos & Slides available: Japan Climate Action Summit 2023 [10/6 Japan Climate Initiative – JCI]

On October 6, the Japan Climate Action Summit 2023 took place, highlighting the urgent need for decarbonization in line with the 1.5°C global target. Spearheaded by JCI [Japan Climate Initiative], the event featured renowned speakers discussing climate finance, renewable energy, and more.

【4】Envisioning Japan's 100% Renewable Future: A Conversation with Ono Teruyuki [10/17 Power Japan Newsletter by Walter James, PhD ]

• Ono Teruyuki, an authority in renewable energy and former Tokyo environmental chief, highlights the city's climate goals and REI's unique position in Japan's energy landscape. As a think tank, REI [ Renewable Energy Institute ] contributes to policy decisions and critiques the government's GX energy strategy. Mr. Ono stresses the importance of realigning Japan's energy investments for a sustainable future and maintaining global competitiveness.

【5】Toyota, Idemitsu join hands to produce solid-state EV batteries [10/12 Nikkei Asia]

• Toyota and Idemitsu are joining forces to develop solid-state batteries for EVs, with a market aim by 2027/28. Solid-state batteries promise extended ranges but face production challenges. Idemitsu, with significant research and patents, plans a large-scale pilot plant by 2027 to test the tech.

【6】Imported EVs Account for 9% of Foreign Vehicle Sales [10/16 The Japan News]

• In the first half of this fiscal year, imported EVs represented 9% of all imported vehicle sales in Japan, a growth of 94.5% YoY. The EV market is diversifying with the number of available models surging from 20 in 2020 to 101 in 2023. Foreign automakers, like China’s BYD and Germany's Mercedes-Benz, are expanding their presence, targeting the Japanese EV sector.

【7】Japan's battle for Thailand, Indonesia auto markets no lost cause [10/16 Nikkei Asia]

• Japanese automakers historically dominate Southeast Asia's vehicle market, holding an 80% share. However, Chinese and South Korean brands are emerging as strong competitors in the electric vehicle (EV) segment. Despite challenges such as dependence on fossil fuels and lack of charging infrastructure in Southeast Asia, there's a rush to promote EVs due to environmental concerns. Japanese manufacturers are now at a crossroads, needing to balance EV innovation with their established strength in internal combustion technology.

【8】Japan firms to issue digital currency for clean energy transaction [10/12 Reuters]

• A consortium of Japanese firms plans to introduce a yen-based digital currency, DCJPY, by 2024 to streamline clean energy transactions. Led by GMO Aozora Net Bank and supported by major banks, the currency integrates with existing bank systems, reduces costs, and aims to revolutionize digital settlements.

【9】Honda, Mitsubishi to launch electricity grid using EVs [10/11 Nikkei Asia]

• Honda and Mitsubishi Corp. are set to form a joint venture in 2024 that utilizes electric vehicles (EVs) as a power supply and storage solution for the main grid. This innovative approach will help mitigate power fluctuations from renewable sources. Additionally, the collaboration may expand into broader energy partnerships and metal recycling from used batteries.

【10】Five times stronger than steel: Japan's new 'wood' [10/15 Nikkei Asia]

Yamaha has begun using Japan-developed wood-derived cellulose nanofibers (CNF) , which is 5x stronger than steel, in its watercrafts, signaling a potential shift from oil-derived plastics. As the globe pushes for decarbonization, CNF's promise stands out, though production costs remain a hurdle. Japan's "Land of Wood" leads the way.

??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)