Innovation and market reform are needed to drive Japan’s clean energy transition, according to a policy review by the International Energy Agency (IEA).
Japan will need to “move quickly to make headway on the steep emissions reductions that are required to achieve its recently announced ambition of reaching carbon-neutrality by 2050”, the review stated.
The report also highlights that nearly a decade after the 2011 earthquake and the resulting Fukushima nuclear accident, Japan has made “real progress” towards developing a more efficient, resilient and sustainable energy system.
The country has embarked on “major reforms” of its energy market and diversified its energy mix, while energy-related CO2 emissions have fallen continuously since their peak in 2013, thanks to the expansion of renewable energy, the restart of some nuclear power plants and energy efficiency gains.
Reliance on fossil fuels has also declined but remains high at nearly 90% of energy supply, making Japan among the most carbon-intensive economies of IEA members, the report found.
IEA executive director Fatih Birol (pictured) said: “Japan needs to accelerate the deployment of low-carbon technologies, remove regulatory barriers and increase competition in its energy markets if it is to reach carbon-neutrality by 2050.
“I welcome Japan’s new Green Growth Strategy that puts emphasis on these priorities. The IEA is committed to supporting the government in these vital efforts.”
Birol launched the report at an online event with Shin Hosaka, the commissioner of the Agency for Natural Resources and Energy at Japan’s Ministry for Economy, Trade and Industry.
The review said additional regulatory reforms will be important to encourage investments in zero-emissions electricity and to improve power system flexibility.
The IEA welcomes the Japanese government’s recent announcement to phase out inefficient coal plants by 2030.
The IEA report highlighted that Japan’s strong innovation and technology base can play a “vital role” in developing the technologies needed to achieve its 2050 energy and climate ambitions.
“I applaud Japan for its leadership in advancing low-carbon hydrogen and carbon-recycling technologies, which will be crucial for decarbonising sectors where emissions are hardest to reduce, such as long-distance transport and heavy industry,” Birol said.