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(Photo: iStock)
Japan plans to finalize the 7th Strategic Energy Plan by mid next year, establishing the next phase of its energy policy. The global renewable energy initiative Renewable Energy 100 (RE100) seizes the opportunity and calls on the Japanese government to triple its renewable energy capacity up to 363 GW by 2035 from 121 GW in 2022. They have also proposed six major policy recommendations to boost the supply of renewable energy in Japan.
Half of RE100 members operate in Japan
The RE100 is a global initiative led by the Climate Group in partnership with the Carbon Disclosure Project (CDP), which aims to bring together the world's most influential businesses committed to 100% renewable electricity and promoting the procurement of renewable energy.
Over 400 companies around the world have joined the RE100 initiative so far. Among them, half have headquarters or operations in Japan, with a total of 87 companies committed to achieving a 100% renewable energy usage target by 2050.
70% of Japan's energy from fossil fuels
Currently, renewable energy meets only 25% of the electricity demand for RE100 members in Japan, significantly lower than the global RE100 average of 50%. RE100 members have identified Japan as the second most challenging market for purchasing renewable energy, due to its high costs, limited supply sources, and procurement difficulties.
Due to Japan's shortage of domestic energy resources and its heavy reliance on imported energy, approximately 70% of its energy comes from fossil fuels. As the world's fifth-largest carbon emitter, Japan spends about USD 140 billion to USD 230 billion annually on fossil fuel imports.
In response to the global achievement of net-zero emissions, over 130 countries, including Japan, committed at last year's COP28 conference to tripling global renewable energy capacity by 2030. Japan also reaffirmed this goal at the G7 meeting in April. However, Japan's current share of renewable energy in the electricity system is only 22%, the lowest among G7 countries.
RE100 highlights that the demand for renewable energy from companies in G20 countries, including Japan, presents significant economic potential. However, policy barriers are hindering the development of the industry.
The NISSIN FOODS group participates in E100 to achieve 100% renewable energy. (Photo: NISSIN)
Six strategies to boost Japan's renewables
To boost renewable energy usage among its members in Japan, RE100 has made the following six policy recommendations to the Japanese government:
- General policy: RE100 suggests that the Japanese government facilitate transparent and fair electricity pricing
- Target setting: Increase renewable energy capacity to 363 GW by 2035 to boost domestic renewable energy supply capacity
- Concrete actions: Improve access to Power Purchase Agreements (PPAs) for businesses by reducing administrative processes
- Infrastructure construction: Prioritize upgrading the power grid and improving operational efficiency, expedite the new projects to grid connection, and utilize renewable energy efficiently
- Investment mobilization: attract approximately JPY 17.9 to 18.1 trillion (about USD 112 to 113 billion) in public and private investments for renewable energy and related technologies from 2025 to 2030
- Regarding Non-Fossil Certificates (NFCs): Simplify the issuance, verification, and certification system to align with international standards
These policy recommendations aim to create a favorable environment for renewable energy in Japan, thereby meeting the demand for green energy from large corporations, ensuring energy security, and enhancing international competitiveness, to achieve net-zero emissions by 2050.
