Japan's 2050 goal: A carbon-neutral society

In October 2020, Japan's Prime Minister, Suga Yoshihide, declared that by 2050 the country would aim to reduce greenhouse gas emissions to net zero and to realise a carbon-neutral, decarbonised society. In December, the Cabinet adopted the green growth strategy, an industrial policy aimed at generating a virtuous cycle of economic growth and environmental protection, together with the business community. A €15.4 billion fund is to be created, to promote ecological businesses and innovation to achieve the goal, offering tax credit of up to 10 %. A carbon tax is being considered. The strategy recognises that it would be unrealistic to cover all electricity demand with renewables only. So, by 2050 Japan's energy mix will comprise renewable energy (50-60 %), hydrogen and ammonia (10 %), and energy generated by nuclear and thermal power plants (30-40 %). The strategy acknowledges that promoting electrification in all sectors will boost electricity demand by 30-50 %. To decarbonise electricity, in addition to using renewables and nuclear, Japan wants to further develop its hydrogen technology (in which it is a front-runner) in the direction of CCUS (carbon capture, utilisation and storage technology). It also wants to focus on tapping into the potential of ammonia. Meanwhile, prospects for nuclear are unclear, as the sector has been deeply impacted by the 2011 Fukushima disaster. Doubts have been raised about the technology necessary for achieving coal substitution and CCUS. Japanese business, while already engaged in innovation projects to achieve net-zero carbon emissions, has expressed reservations about some elements of the strategy and the proposed carbon tax. Japan is actively involved in international cooperation on green technologies and could be an ideal partner to the EU, which, through its European Green Deal (EGD), also aims to achieve climate neutrality by 2050. During their May 2021 summit, the EU and Japan adopted the declaration ‘Towards a Green Alliance to protect our environment, stop climate change and achieve green growth’.