Japan has unveiled an ambitious plan to cut greenhouse gas emissions by 60% by 2035 and 73% by 2040, compared to 2013 levels, as part of its latest climate and energy strategy. This policy aims to accelerate Japan’s transition toward a carbon neutral economy while balancing energy security and industrial growth. 

The plan outlines a significant shift in Japan’s energy mix, with renewables expected to contribute up to 50% of electricity generation by 2040. Nuclear power will also see a boost, rising to 20% of the energy supply, reversing previous commitments to reduce nuclear dependence. The government is prioritizing the development of next-generation reactors to ensure energy stability amid ongoing challenges in restarting nuclear facilities since the Fukushima disaster. 

As part of its commitment to the Paris Agreement, Japan will submit an updated Nationally Determined Contribution (NDC) this month, reinforcing its long-term carbon reduction goals. While public feedback urged a more aggressive emissions target, officials upheld the current reduction framework, citing prior expert reviews. 

Beyond energy, the strategy integrates decarbonization with industrial development by establishing industrial clusters in regions abundant in renewable and nuclear resources. The government aims to position Japan as a leader in sustainable industry while ensuring economic competitiveness. 

However, the transition faces significant hurdles. Japan’s offshore wind sector is experiencing setbacks due to high costs and inflation, with major companies reassessing their renewable energy investments. Additionally, geopolitical factors, including shifts in U.S. climate policies, introduce further uncertainty into Japan’s long-term sustainability roadmap. 

Despite these challenges, Japan’s latest climate framework demonstrates a strong commitment to ESG principles and carbon neutrality. By aligning industrial policy with decarbonization, the country is working toward a greener economy while addressing economic and political complexities that could impact its future sustainability goals. 

Sources: 

https://esgnews.com/japan-sets-73-emissions-cut-target-by-2040-in-new-climate-and-energy-plan/ 

https://www.washingtonpost.com/world/2025/02/18/japan-climate-energy-decarbonization-targets-nuclear-carbon/5e7f9756-edff-11ef-bd80-8f2ac5c75a8a_story.html 

https://www.reuters.com/world/japan/japan-approves-new-climate-energy-industry-policies-through-2040-2025-02-17/ 

https://apnews.com/article/japan-climate-energy-decarbonization-targets-nuclear-carbon-7006f2dd241e30a3129a00da5bf707dd