Japan's challenging path to Net Zero

Greetings! It's issue 51 of the "Japan Climate Curation" newsletter??!?

Japan's greenhouse gas emissions increased by 2% in the year ending March 2022, marking the first rise in eight years, as post-pandemic economic recovery led to higher energy consumption. In the meantime, renewable energy accounted for 20.3% of Japan's total energy consumption.

The country's G-7 Energy and Environment Ministers meeting concluded without a deadline to halt new coal investments, supporting Japan's advocacy for a diverse approach to energy transition. Toyota Motor's new president, Sato Koji, emphasized a "multi-pathway" strategy for carbon neutrality, focusing on various vehicle types. Goldman Sachs is seeking environmental investments in Japan through its $1.6 billion Horizon Environment & Climate Solutions fund.

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

【1】Japan Emissions Rise for First Time in 8 Years in Blow to Climate Goal - The increase was driven by a post-pandemic economic recovery and mirrors rises across the G-7, the nation’s Ministry of Environment said. [4/21Bloomberg]?

• Japan's greenhouse gas emissions rose 2% in the year ending March 2022 to 1.12 billion metric tons of carbon dioxide equivalent due to post-pandemic economic recovery, marking the first increase in eight years. The country had already committed to a 46% reduction in emissions by the end of this decade to meet its mid-century net-zero target, but the latest figures show that Japan's emissions-reduction trajectory is furthest from what is needed by 2030 to reach net-zero by 2050 among the G-7 countries.?

【2】Japan's energy consumption grows for first time in 4 years [4/24 NHK WORLD-JAPAN News]?

• The Economy, Trade and Industry Ministry says renewable energy accounted for 20.3 percent of the total, marking the first time the figure has exceeded 20 percent since 2010 when comparable data became available.

【3】Watch G-7 Ministerial Meeting on Climate, Japan's Net Zero [4/18 Bloomberg]?

• The G-7 Energy and Environment Ministers meeting ended without a deadline to halt new coal investments, with the host --Japan--noting that nations will have various paths to get to net zero. We focus on Japan's own challenges to get to carbon neutral with BloombergNEF's David Kang.

【4】Opinion: G-7 is not paying enough heed to Japan's sensible stance on energy -While Tokyo won temporary reprieve for coal and gas, more realism still needed by Vandana Hari? [4/24 Nikkei Asia]?

• Japan successfully advocated for a more realistic and diverse approach to energy transition at the G-7, highlighting the need for continued use of coal and natural gas in the absence of viable alternatives.

【5】Japan's Mitsui buys U.S. gas asset in 'pragmatic solution' for energy transition [4/20 Reuters]?

• Japan's Mitsui & Co has acquired a 92% stake in a Texan unconventional gas asset from Silver Hill Eagle Ford E&P to promote its gas business as a pragmatic energy transition solution. Mitsui aims to produce over 200 million cubic feet of gas daily, with access to the US Gulf Coast's LNG export terminals and ammonia plants. The company believes natural gas and LNG will play a crucial role in transitioning to renewable energy.
• Energy-poor Japan wants to keep LNG as a transition fuel for at least 10 to 15 years. Germany and some other G7 members do not welcome new gas investments believing renewable energy development should be the priority.

【6】Toyota CEO Sato pledges to cut CO2 'more than half' by 2035 - Automaker will look at local needs in 'multi-pathway' approach to decarbonization? [4/21 Nikkei Asia]?

• Toyota Motor Corporation's President and CEO, Koji Sato, has announced that the automaker will accelerate its decarbonization drive by cutting the amount of carbon dioxide emissions per new car sold worldwide by over 50% from the 2019 level by 2035. To achieve this, Toyota will shift from gasoline-powered cars to hybrid vehicles, electric vehicles, and other tools depending on the situation. Toyota's new target will require the entire supply chains to engage in reduction efforts at the stages of production, logistics, and other operations. The automaker will also promote the use of renewable and hydrogen energy sources at its factories.

【7】Toyota president stresses 'multi-pathway' approach to carbon neutrality? [4/21 NHK WORLD-JAPAN News]?

• Toyota Motor's new president, Sato Koji, emphasizes a "multi-pathway" strategy for achieving carbon neutrality, focusing on producing electric vehicles (EVs), hybrids, and other car types. Koji notes the challenges of a rapid transition to EVs in some Asian regions and stresses the importance of feasibility and regional infrastructure. Toyota aims to provide solutions for various regions with differing regulations and needs, promoting its multiple pathways approach with EVs, hybrids, hydrogen-powered, and fuel-cell vehicles. Koji also commits to enhancing Toyota's battery procurement and production capabilities for a global sales goal of 1.5 million EVs annually by 2026.

【8】Goldman Sachs seeks Japan investments for $1.6bn green fund - Companies with new technologies targeted, looking beyond mature renewables sector [4/21 Nikkei Asia]?

• Goldman Sachs is seeking environmental investment opportunities in Japan and Asia through its $1.6 billion Horizon Environment & Climate Solutions fund, focusing on decarbonization and sustainable economic activity. While most investments will be in North America, a portion is allocated for Europe and Asia. Potential targets include companies specializing in storage batteries, recycling, and energy efficiency technologies. The fund surpassed its initial $1 billion target, indicating growing investor interest in decarbonization.

【9】[video] Seeking solutions for plastic pollution - We look at the plastic pollution crisis and how countries are grappling with how to reduce and replace plastics.?[4/24 NHK WORLD-JAPAN News]?

【10】OPINION | Greenwashing madness as 'low-carbon' ammonia shipped from Saudi Arabia to Japan to be burned at oil refinery [4/24 Hydrogen news and intelligence]

• Saudi Aramco has shipped 'low-carbon' ammonia from Saudi Arabia to Japan, where it will be co-fired in a gas boiler at an oil refinery, claiming it as a landmark achievement for lower-carbon energy. However, this process is criticized as greenwashing and economically unviable, as it produces more greenhouse gas emissions than it saves. The ammonia, made from fossil gas, contributes to emissions throughout its production, transport, and combustion stages.

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

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ichi (Hiroyasu Ichikawa)