Japan is setting new climate, energy, and industry policies with targets extending to 2040. These measures are designed to provide businesses with long-term policy stability by promoting decarbonisation, ensuring a stable energy supply, and strengthening industrial capacity to drive economic growth.
Under the new climate policy, Japan aims to achieve substantial reductions in greenhouse gas (GHG) emissions. The country plans to cut GHG emissions by 60% from 2013 levels by 2035 and further reduce them by 73% by 2040, thereby extending its 2030 goal of a 46% reduction.
These emissions-cutting targets have faced calls for deeper reductions from experts and ruling coalition members, as Japan, the world’s fifth-largest carbon emitter, grapples with reducing its dependence on fossil fuels.
Despite public support for a more ambitious target, the environment and industry ministries finalised the goal without changes, referencing prior discussions by climate experts. Japan intends to submit its new target, known as a Nationally Determined Contribution under the Paris Agreement, to the United Nations.
The revised energy policy aims for renewables to constitute up to 50% of Japan’s electricity mix by the fiscal year 2040, with nuclear power contributing another 20%. This approach supports the push for clean energy while meeting rising power demand.
“It is necessary to utilise LNG-fired power as a realistic means of transition, and the government and the private sector must jointly secure the necessary long-term LNG contracts in preparation for risks such as price hikes and supply disruptions,” the draft said.
The new energy plan eliminates the previous goal of minimising reliance on nuclear energy and instead calls for building next-generation reactors.