RE100 in Japan: Accelerating Corporate Renewable Energy Adoption

In this week‘s edition, we will focus on the Corporative activities toward decarbonization in Japan.

The global initiative RE100(Renewable Energy 100) is led by the Climate Group in partnership with CDP (Carbon Disclosure Project). It brings together major corporations committed to using 100% renewable electricity in their operations.

The requirements to participate in RE100 are as follows;

1.Annual electricity consumption is 100 GWh or more. (For Japanese companies, the requirement is currently lowered to 50 GWh or more. )

2.Set and announce a time-bound goal to convert 100% of the electricity used in its business to renewable energy.

3. Entire group of a company must participate and work toward the shift to renewable energy. (All subsidiaries with a control ratio of 50% or more from the parent company are eligible to participate.)

RE100 Member companies

Japan’s Involvement in RE100Japan has one of the largest numbers of RE100 member companies in the world, with over 85 Japanese corporations (as of 2024) pledging to achieve 100% renewable electricity.

The initiative has gained strong momentum among manufacturers, retailers, financial institutions, and tech companies in Japan.

Key Japanese Companies in RE100Several major Japanese corporations have joined RE100, including:

• Sony (Target: 100% renewable energy by 2030)
• Toyota (Target: 100% renewable energy by 2050)
• Ricoh (First Japanese company to join RE100, aiming for 100% by 2050)
• SoftBank (Target: 100% renewable energy by 2030)

Fujitsu, Hitachi, Panasonic, Nissan, and Takeda Pharmaceutical are also part of the initiative.These companies are investing in solar, wind, hydropower, and purchasing green electricity to meet their goals.

Government and Policy Support

1. Green Energy Certification Systems: Japan has introduced corporate PPAs (Power Purchase Agreements) and green electricity certification systems to help companies procure renewable power.
2. FIP (Feed-in Premium) Scheme: Japan's government is shifting towards a market-based incentive system to make renewable energy more cost-competitive.
3. Corporate Renewable Energy Auctions: Some regions allow businesses to directly invest in renewable energy projects.

Challenges for RE100 in Japan

Despite growing interest, companies face challenges such as:

• High renewable energy costs compared to fossil fuels.
• Limited availability of corporate PPAs for direct renewable energy procurement.
• Grid constraints that slow the integration of renewables into Japan’s power system.

The RE Action

Japan has another framework called “the RE ACTION” to promote 100% renewable energy use in society as a whole by mobilizing markets and policies through the demonstration of willingness and action by companies, local governments, educational institutions, medical institutions, and other electricity consumers to convert 100% of their electricity use to renewable energy.

?As of October 31, 2022, there were 286 participating organizations.

]?Of these, 45 have achieved 100% renewable energy by FY2020.