"G7 coal phase-out by 2035" & Japan's energy transition challenges and opportunities

Welcome! I am Hiroyasu Ichikawa, ichi, and this is issue 103 of the "Japan Climate Curation" newsletter??, which curates Japan-related climate news content every week since spring 2022, with over 2,280 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)!

*note: "Climate Curation" newsletter in ????Japanese (every Saturday) is available on Linkedin/note/theLetter. It curates Japan and global climate-tech trends. I hope you may like it.

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

【1】G7 countries agree to end use of coal power by 2035, says UK minister [4/29 Financial Times]

• G7 energy and climate ministers agreed to phase out unabated coal power by 2035, with some flexibility for coal-dependent countries like Japan. The deal, described as "historic," aims to accelerate Asia's transition to clean energy. However, activists say more ambitious targets are needed.

【2】G7 aims to boost power storage capacity sixfold by 2030 - Energy ministers to set goal in joint statement with eye on renewables [4/29 Nikkei Asia]

• The G7 is pushing to increase global electricity storage capacity by 6.5 times by 2030 to support the expansion of renewable energy. Storage batteries and hydrogen are seen as key to managing supply instability. The G7 also aims to boost investment in power transmission and distribution.

【3】Japan's Sumitomo plans $1.3bn power storage network for renewables - The trading house looks to sell stored electricity to utilities and chip industry [4/24 Nikkei Asia]

• Sumitomo Corp. invests heavily in battery storage facilities to capture excess renewable energy in Japan. The network will help reduce discarded energy, support the grid, and generate revenue. Sumitomo will also utilize recycled EV batteries, promoting sustainability.

【4】Japan's Kishida to lead creation of ministerial dialogue on decarbonization at OECD - 58 countries including 'Global South' to join framework to tackle climate change [Nikkei Asia]

• Japanese Prime Minister Fumio Kishida will unveil a new ministerial dialogue framework on decarbonization at the OECD meeting in Paris, involving 58 countries across developed and emerging economies. Japan seeks to drive global climate change, AI, and digital data cooperation.

【5】Japan and EU to unify subsidy rules for EVs, solar panels - Two sides aim to reduce supply chain dependence on China [4/26 Nikkei Asia]

• Japan and the EU plan to create common rules on subsidies and procurement for EVs and renewable energy equipment to foster regional industry and ensure stable supplies, with consideration for environmental standards and cybersecurity measures.

【6】Soros family fund among investors in Japan electricity exchange startup - Enechain aims to stabilize wholesale prices to spur new entrants into retail market [Nikkei Asia]

Enechain, a Japanese electricity exchange startup, has secured 5 billion yen($32 million) from 17 investors, including major energy companies and Soros Capital Management. The investment aims to boost liquidity and transparency on the platform, helping small retailers compete and stabilize prices.

【7】Opinion: Why Nissan needs more than a gamble on solid-state batteries - Japanese carmaker has fallen behind in electric vehicle race and lacks scale needed to compete globally [4/24 Financial Times]

• Nissan is banking on solid-state batteries to boost its struggling position in the EV market, claiming key technological breakthroughs. However, with no automaker achieving mass production yet, investors remain cautious about Nissan's heavy reliance on this unproven technology.

【8】Honda Commits to E.V.s With Big Investment in Canada - The Japanese automaker, which has been slow to sell electric vehicles, said it would invest $11 billion to make batteries and cars in Ontario. [4/25 New York Times *??Gift URL]

• Honda is investing heavily in electric vehicle production in Canada, with an $11 billion commitment to build batteries and cars in Ontario. The move signals a shift towards EVs for the Japanese automaker, which has been slower than others to embrace the technology.

【9】COMMENTARY: The double standard of Japan’s energy companies abroad - Government and corporate strategies are prioritizing LNG over net-zero goals [4/29 The Japan Times]

• Japan's utilities are expanding LNG investments and demand in Asia, despite domestic oversupply and net-zero pledges. Government policies actively promote this agenda, undermining decarbonization efforts. Abandoning LNG targets and refocusing finance could enable a cleaner energy transition.

【10】Climate change, chalky grains and the risks for Japan’s rice farmers [4/28 The Japan Times]

• Japan's rice farmers are grappling with the impacts of climate change as scorching summers lead to chalky grains and lower yields. While adaptation measures like heat-resistant varieties and new technologies are being introduced, their success hinges on consumer acceptance. Experts warn that limiting global warming is essential to prevent irreversible damage.

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

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ichi (Hiroyasu Ichikawa)