Heavy industry groups along with the Japan Business Federation (Keidanren) dominate Japan's climate agenda. Their staunch opposition to policies like carbon taxation and continued advocacy for thermal fossil power is disconnected from their own support of the government's 2050 net zero target, an...
Flagship 150 trillion yen (USD 1.1 trillion) GX Strategy and Roadmap is under strong negative influence by the heavy industry to weaken carbon pricing policy elements and extend financing for technologies misaligned with IPCC science, including coal and ammonia thermal power.
InfluenceMap's new interactive Automotive Climate Tool for the first time combines leading analysis of the automotive sector's climate policy engagement, with industry-standard IHS Markit data on automakers' zero-emissions vehicle production strategies.
InfluenceMap’s new report finds that Japanese and South Korean steel companies rank among the most negative on climate policy engagement when compared with their global competitors. This opposition to Paris-aligned climate policy contrasts with many of the steel sector’s customers (in real estate...
Corporate Influencing of Japan's Climate and Energy Choices
The following briefing focuses on how Japanese industry associations lobbied the Taxonomy and considers how these lobbying positions contrast with those of some leading European financial institutions.
An investor briefing on Japanese financial sector exposure to coal power
This report examines Japan's plans to expand coal both domestically and in Southeast Asia against global trends of accelerated renewable electricity capacity. It finds this strategy is misaligned with the strategic interests of Japan's technology-based industries.
On 28th March, Japan Climate Leaders’ Partnership released a recommendation paper, advocating for the implementation of carbon pricing; decarbonization of the power sector via the acceleration of renewable energy implementation; and early coal phaseout. The paper also supported renewable energy legislation, setting a goal of 100% zero-emissions vehicles in new passenger car sales by 2035, and setting ambitious goals for decarbonizing heavy-duty vehicles in Japan.
In a policy proposal on overseas infrastructure published on its website on 14th March, the Japan Business Federation (Keidanren) supported "policy finance for the development of various infrastructures that contribute to the stable supply of LNG."
A 3rd March Reuters article reported on Honda’s CEO, Toshiro Mibe, appearing to support a long-term role for ICE-powered vehicles until at least 2040, as well as emphasizing challenges associated with charging infrastructure.
During the Resources and Fuels subcommittee hosted by Japanese METI on 22nd of February, The Federation of Electric Power Companies of Japan demanded the extended role and stable supply of coal in Japan instead of LNG, amid the risk of energy security of LNG and stable supply of electricity.
A 27th February article from the Times reports that a senior Honda executive has stated that the UK government risks a “chaotic fiasco” with continued delays to the zero-emission vehicle mandate, noting that the ““political inertia” was “very frustrating”.
During its regular press conference in February 17th, the chairman of Federation of Electric Power Corporations (FEPC), Ikebe, appeared to support carbon pricing in Japan, with the exception that it should not impede the promotion of electrification. He also expressed broad support on carbon neutrality, however, it is unclear if the position is aligned with IPCC advice.
In a February 8th press release, Chairman of the Japan Gas Association, Takehiro Honjo, appeared to indicate support for e-methane.
According to a January 23rd article on its website, Japan Business Federation (Keidanren) submitted a position paper on the GX Basic Policy, in which it generally supported an increase in renewable and nuclear energy.
In a January 31st press release, the Vice President of Toyota Australia emphasized concerns around battery electric vehicle expansion in Australia to instead promote the role of hybrid internal-combustion engine powered vehicles, noting that “that's why it's just too early - and too risky for the environment and for our customers - to put all our eggs in the electric-vehicle basket”. Additionally, in a speech at the World Economic Forum in January, reported by Automotive News, Toyota’s Chief Scientist, Gill Pratt, continued to advocate for a longer-term role for internal combustion engine-powered hybrids over battery electric vehicles, stating that “the best answer is actually a mix of different vehicle types” while stressing concerns around lithium supplies.
In January 23rd, Central Japan Economic Federation (CJEF) has submitted a position paper to the Japanese Cabinet Secretariat’s public comment on the Green Transformation roadmap, generally supporting the renewable energy legislation including feed-in tariffs. It also supports emissions tradings but emphasizes that it should be flexible. CJEF expressed mixed support on carbon pricing, stating that a carbon price should not affect the competitiveness of the sector. CJEF also supported maintenance of a high greenhouse gas emissions energy mix in the power sector and transport, while supporting government support for decarbonizing the steel sector. Further, the association supported energy transitions in Asian countries, while emphasizing that each countries’ situation (such as fossil fuel dependency) should carefully be considered.
In a January 19 Bloomberg article, the head of ESG research at JPMorgan Securities Japan Co. stated support for the Financial Services Agency’s proposed rules that would raise the threshold for funds to be able to use the label “ESG.”
At the Nuclear Power Subcommittee held by the Ministry of Economy, Trade, and Industry (METI) on December 8th 2022, Keidanren supported nuclear power, although it did not specify a position on the energy mix in general.
According to a Nikkei GX article published on 20th March, Ikebe, chairman of Federation of Electric Power Companies of Japan (FEPC), who is also president of Kyushu Electric Power Company, stated “fossil fuel-based thermal power, including coal, is highly important."
In a 7th March joint letter to Japanese Prime Minister Fumio Kishida, industry associations including American Petroleum Institute (API), Asia Natural Gas and Energy Association (ANGEA), Eurogas, International Association of Oil and Gas Producers (IOGP), International Gas Union, US Chamber of Commerce advocated for new infrastructure investments in fossil gas and LNG to support the “vital” role of gas ahead of G7 Summit in Hiroshima in May.
During the Resources and Fuels Subcommittee meeting hosted by the Japanese Ministry of Economy, Trade and Industry (METI) on 22nd February, the Japan Gas Association supports resource diplomacy of Japanese government to secure stable LNG and its upstream development.
During the Resources and Fuels Subcommittee meeting hosted by the Japanese Ministry of Economy, Trade and Industry (METI) on February 22, the Petroleum Association of Japan called for careful design of the carbon levy to ensure that it is "not overly burdensome".
At the Green Transformation League Symposium held by Japan's Ministry of Economy, Trade and Industry on the 14th February, Daikin Industries said it has been working to develop energy conservation standards in Brazil, Mexico and the Middle East, and will promote this type of activity in Asia and Africa.
According to a Toyo Keizai article released on 15th February, Japan Business Federation (Keidanren) supports GX (Green Transformation) Policy of Japan, stating “I appreciate that the government has incorporated most of our recommendations”, though it is unclear if Keidanren supports other policies.
On 2nd February, Japan Electric Manufacturers Association disclosed that it has submitted the opinion paper to the ministry of economy, trade and industry about “Basic Policy for the realization of GX”. It appears to support the measure to promote feed-in-premium, increased renewable energy and zero-emission thermal power, without being clear if the associations timelines are aligned with IPCC guideline.
During its regular press conference on January 20th, the chairman of the Federation of Electric Power Corporations of Japan (FEPC), Kazuhiro Ikebe, appeared to support the mid-to long-term use of nuclear, the use of renewable energy as the main source of power, and the realization of zero-emission thermal power generation, without being clear if the associations timelines are aligned with IPCC guideline.
On January 20th, the Japan Association of Corporate Executives (Keizai Doyukai) published on its website its public comments on the Japanese government’s Green Transformation (GX) Basic Policy and Roadmap, supporting the increased use of nuclear power and renewable energy, with some ambiguity on the extent of their deployment. It also appeared to show mixed support for the GX Roadmap and its “Growth-Oriented Carbon Pricing” concept, as well as emissions trading. It appeared to not support a carbon tax, instead supporting a carbon consumption tax on consumers.
At the Electricity and Gas Basic Policy Subcommittee held by the Japanese Ministry of Economy, Trade, and Industry (METI) in 25th January, Keidanren advocated for the public to share the risks and costs of fossil fuels.
As reported by the Japan Metal Bulletin, at a round-table meeting with the steel industry hosted by the Minister of Economy Trade, and Industry on January 13th, the chairman of the Japan Iron and Steel Federation requested government support for decarbonization investments and green power and hydrogen infrastructure, but did not specify a position on decarbonizing hydrogen.
As reported on December 8th by Nikkan Kogyo Shimbun, Keidanren advocated for a longer role for hybrid vehicles, stating intentions to create a trend of "various means" to promote decarbonization, including hydrogen and fuel cell vehicles, and to compile proposals for the G7 summit in Hiroshima in May 2023.
At a hearing of the Japanese Ministry of Economy, Trade, and Industry (METI)’s Hydrogen and Fuel Cell Strategy Council on the 24th March, Panasonic requested that the diffusion of distributed hydrogen power generation be made a national strategy, but did not specify a position on decarbonizing hydrogen production.
According to the Keidanren Times published on March 2, Gil Pratt, CEO of the Toyota Research Institute, advocated a long-term role for ICE-powered hybrid light-duty vehicles over a complete transition to BEVs at the February 8 meeting of the Mobility Committee of the Japan Business Federation (Keidanren). This was also reported by JAMA blog.
During the Resources and Fuels Subcommittee meeting hosted by the Japanese Ministry of Economy, Trade and Industry (METI) on 22nd February, the Petroleum Association of Japan called for "careful design of the carbon levy" to avoid overburdening.
During a Resources and Fuels Subcommittee meeting hosted by the Japanese Ministry of Economy, Trade and Industry (METI) on February 22, the Japan Gas Association advocated for continued government support to secure stable liquefied natural gas supply and upstream development.
At a hearing of the Japanese Ministry of Economy, Trade, and Industry (METI)’s Iron and Steel Working Group on 16th February, the Japan Iron and Steel Federation (JISF) appeared to support the Japanese government’s ‘growth-oriented carbon pricing’ scheme, with conditions including a phased introduction and investment in technological development. Meanwhile, it emphasized that the carbon tax and emissions trading system proposed in previous discussions on carbon pricing would have deprived industries of resources for technological development. It also supported expanded roles for electric furnaces and hydrogen in steelmaking, without specifying a position on the decarbonization of hydrogen.
According to a Keidanren Times article published on 16th February, the Japan Business Federation (Keidanren) has submitted its proposal to the Minister of Economy, Trade and Industry of Japan, which includes the need for the system to secure oil and fossil gas in the medium and long term.
According to the article on its website on January 23rd, Japan Business Federation (Keidanren) has submitted the position paper on the Green Transformation (GX) Basic Policy, generally supporting an increase in renewables and nuclear in Japan.
At a press conference on January 31st, the chairman of the Japan Association of Corporate Executives (Keizai Doyukai) stated that Japanese internal combustion engine vehicles and hybrid technology should be expanded “rather than forcibly converting to electric vehicles” in regions lagging in infrastructural and economic means.
On January 24th, the Japan Electric Manufacturers Association (JEMA) submitted a position paper to the Japanese Ministry of Economy, Trade and Industry (METI), demanding to revise the system to allow extension of operation of nuclear plants beyond 60 years, without specifying the relative role of nuclear in the full transition towards a zero-emission energy system.
At a press conference on 23rd January, the Chair of the Petroleum Association of Japan supported the Green Transformation Basic Policy, and advocated for sustainable aviation fuels and synthetic fuels in Japan.
Petroleum Association of Japan (PAJ) hosted a “General Rally” attended by 109 members on November 16th in order to appeal for a reduction in petroleum-related taxes. It stated that it "absolutely opposes further oil tax hikes and the introduction of a carbon tax."
As reported by Nikkei Asia on January 6, at a press briefing, Panasonic’s group chief technology officer advocated for the increased development of hydrogen power in Japan, but did not specify a position on decarbonizing hydrogen production.
