Policy Engagement Overview
Several industry associations, including Japan Association of Corporate Executives (Keizai Doyukai) and Consumers Japan, continue to support the ambitious 2030 renewable energy target. Moreover, an increasing number of industry groups have expressed support since the government raised its target. On the other hand, the Japan Iron and Steel Federation (JISF) and the Federation of Electric Power Companies of Japan (FEPC) are cautious about the target, highlighting the economic and technical problems associated with the introduction of renewable energy.
While many companies have not expressed a clear position on the 2030 renewable energy target, SoftBank Group, Nissan Motor, and others have demanded that the government further raise the target.
Policy Engagement Trends
In October 2021, the Japanese government raised its target for the renewable energy ratio in the energy mix for FY2030 from 22~24% to 36~38%. Since then, support for the renewable energy target has steadily increased. Industry groups such as Keizai Doyukai, Japan Climate Leaders Partnership (JCLP), Renewable Energy Council, and the Consumers Japan had been calling for the government to significantly increase the target before the revision in October 2021.
On the other hand, some industry groups are cautious about the 2030 target. The Kansai Economic Federation stated in March 2021, before the government raised the target, that "the scenario for making renewable energy the main source of power should be flexibly reviewed." The Japan Iron and Steel Federation also stressed that the government's proposal to increase the ratio of renewable energy will increase costs to be borne by the public and claimed that it would lead to "a retreat from the current plan in terms of economic efficiency and stable supply." Furthermore, the Federation of Electric Power Companies of Japan emphasizes that the public will bear a greater burden when installing renewable energy and is cautious about setting a "big target."
Not many companies have expressed a clear opinion on the 2030 renewable energy target. However, SoftBank Group has requested the government to improve the ambition of its renewable energy target prior to the announcement. Companies such as Sony Group, Seven & i Holdings, and Nissan Motor have signed a joint statement calling for setting ambitious renewable energy targets in June 2022. Toyota Motor supported the 2030 renewable target in its corporate disclosure document in December 2021, while the CEO publicly stressed the cost concerns related to the target in September 2021.
