Japan plans to announce revised energy mix targets that will extend to fiscal 2040 by March next year, as reported by Nikkei Asia on April 16. The move intends to provide enterprises with a clearer outlook of the country’s long-term decarbonization goals, enabling them to make more informed investment decisions. These new energy structure targets will be integrated into Japan’s updated Strategic Energy Plan, a roadmap updated every three years. According to the previous Strategic Energy Plan published in 2021, the country seeks to generate 36% to 38% of power from renewable energy and 20% to 22% from nuclear power by fiscal 2030, aiming to reduce the national greenhouse gas (GHG) emissions by 46% by then on 2013 levels. Although discussions on the new energy mix strategy have yet to start, the government is envisioning a 66% reduction in GHG emissions by fiscal 2035 from 2013 levels.

Specific long-term energy goals can provide companies with clearer insights into Japan’s renewable energy future to help them plan for new investments. For instance, the Strategic Energy Plan for 2030 signals a sharp decline in fossil fuel usage and significant growth opportunities for renewable energies and nuclear power, compared with Japan’s current coal-reliant energy structure. In fiscal 2022, Japan’s energy mix comprises 72.8% from fossil fuels, 21.7% from renewable energy sources, and 5.5% from nuclear power.

Sources:

https://asia.nikkei.com/Business/Energy/Japan-to-set-fiscal-2040-energy-mix-goal-to-spur-investments

https://www.bloomberg.com/news/articles/2024-04-15/japan-considers-emissions-cuts-in-new-energy-plan-says-nikkei