Toyota Tsusho [8015:JP], the trading arm of Toyota Group [7203:JP], will pay JPY185bn (USD1.43bn) to purchase the remaining 40% equity in Japanese renewable company Eurus Energy from Tokyo Electric Power [9501:JP], as reported by Bloomberg on May 26. Eurus Energy develops renewable power projects worldwide and has built more than 100 projects across 15 countries. The deal is expected to be finalized as soon as June 2022. Last year, Toyota Motor was reported to have considered buying a 40% stake in Eurus Energy for its green transition and carbon reduction commitment.
Major corporations in Japan have been stepping up renewable energy-related investment and acquisitions in recent years, following the announcement of Japan’s climate targets. The country aims to cut carbon emissions by 46% from 2013 levels by 2030 and reach carbon neutrality by 2050. Last year, Toyota announced a new carbon neutrality goal for its global factories by 2035, moving its previous 2050 target forward. To achieve this target, the company drew up plans in 2021 to spend JPY1.5tr (USD11.6bn) on the supply and development of batteries for hybrid and electric vehicles (EVs) through 2030. It also seeks to add 70 production lines for EV batteries by 2030 to prepare for its green transition. Another top automaker in Japan, Honda Motor [HMC:US], already started buying renewable power produced in Texas and Oklahoma in 2019 to offset the carbon emissions generated from its US factories. Honda also pledged to sell only EVs and fuel cell vehicles (FCVs) by 2040.