Japan Will Revise Its Carbon Emission Targets to Speed up Industrial Restructuring
Nihon Keizai Shimbun recently learned that the Japanese government will propose a goal of reducing its net greenhouse gas emissions to zero by 2050. Yoshihide Suga, Japan's Prime Minister, will announce the policy in his first policy speech as prime minister on October 26th. The Japanese government had always emphasized "to reduce emissions by 80% by 2050" and "achieve a decarbonized society as soon as possible in the second half of this century". It has been criticised for taking a "negative attitude towards environmental issues" because it does not give a specific year to reduce emissions to zero and the response is unclear. Yoshihide Suga is expected to state in his policy speech that Japan aims to achieve a decarbonized society by reducing overall emissions to zero by 2050. In order to meet the high standards of international conventions, Japan will be forced to transform its industrial structure. Japan intends to revise its basic energy plan by summer of 2021, which requires a big overhaul. The current plan stipulates that the proportion of power sources in 2030 is that nuclear power accounts for 20-22%, renewable energy accounts for 22-24%, and coal and liquefied natural gas (LNG) accounts for 56%. In terms of the proportion of renewable energy, Europe is about 30% and Japan is only 17%. It will not be easy to drastically reduce thermal power generation, which currently accounts for 70%. If that is not possible, the full introduction of emissions-based taxes on carbon and emissions trading could become a choice, increasing the burden on companies and others. As new targets are set, Japan will unveil policies that focus on expanding renewable energy. Japan's industrial structure will be transformed by its response to global warming. To promote photovoltaic and wind power generation, Japan will support the development of large-capacity batteries. It is also expected to announce policies to expand the establishment of hydrogen refuelling stations and to consider implementing policies to promote green investment.