Japan's METI, Innovation for Cool Earth Forum stress on decarbonization

Japan's government and industry are advancing the Green Transformation (GX) strategy to strengthen energy security and decarbonization amid geopolitical uncertainties.

Discussions at the 13th Annual Meeting of the Innovation for Cool Earth Forum in Tokyo Oct. 8, set forth faster electrification, scientific innovation and comprehensive value chain as the need of the hour for GX.

"The Japanese government is now advancing GX with the aim of simultaneously achieving a stable energy supply, economic growth and decarbonization," said Mami Fukuchi, deputy director-general for innovation policy, innovation and environment policy bureau, Ministry of Economy, Trade and Industry, Japan.

"As uncertainties surrounding energy continue to grow, we are promoting public and private sector investment and providing seamless support from the development of innovative technologies through the deployment in society."

In his address, Nobuo Tanaka, chair of the ICEF Steering Committee, said countries' energy pursuits are divided between "petro-states" and "electro-states" amid new geopolitics in the energy trade.

Strategies, partnerships

In such a scenario, Japan and Korea, which depend heavily on oil and gas imports, face a challenge and must work together on a green transition closely aligned with decarbonization, Tanaka said.

"China and the EU are trying to reduce the dependency on the petro-state by electrification using electric vehicles, solar, wind, batteries and EVs," Tanaka said.

"At the same time, Europe is trying to reduce dependency on Russia. So, this is the kind of new geopolitics of energy," as electrification accelerates, Tanaka added.

Electrification is facing rising demand from data centers and the digital economy, requiring deeper investment in energy transition, ICEF members said.

In "just one year, because of this AI revolution, our forecast of demand" has increased significantly, according to JJ Yu, vice-chairman, SK Group and CEO, SK Americas.

"Last year, our peak demand in Korea was about less than 100 gigawatts, but we expect now 150-160 GW, meaning that 50%-60% of additional [power] demand we have to deal with," Yu said.

Channeling subsidies

The switch to renewables for decarbonization and energy security relies on political will in addition to private-sector investments, industry participants said at the ICEF.

"Energy security and affordability and the environment [is] always strongly related to the political situation," said Shin Hosaka, senior executive vice president and assistant to the president and CEO, INPEX Corp.

Speakers said that with countries taking the lead in electrification, subsidies for fossil fuels may be irrelevant, as they were going toward an industry that relied on imports.

Several speakers, including Yu, spoke in favor of greater adoption of nuclear power to replace coal. Global energy trade is experiencing a rapid shift toward electrification, renewable energy and nuclear power, in response to energy supply disruptions caused by geopolitical conflicts, International Energy Agency's executive director Fatih Birol said at the ICEF.

Unifying regulations

Policymaking for clean energy remained in silos and should be integrated with common regulatory frameworks, Mike Enskat, director, innovation and technology center at the International Renewable Energy Agency, said.

"Green hydrogen policies need to be well aligned with climate, industry and energy objectives and strategies," Enskat said. "Public sector support — direct subsidies or incentives, auctions, public procurement — can boost market maturity."

Keisuke Koide, chief executive staff officer, hydrogen strategy division at Kawasaki Heavy Industries Ltd., also noted the importance of standardization of rules, calling it "not technical... but strategic" requirement.

Collaboration across the value chain was important and international standardization was paramount, Koide, whose company is building a liquified hydrogen supply chain, said.

Mirei Isaka, director, international collaboration sector, hydrogen and ammonia department, New Energy and Industrial Technology Development Organization, spoke in favor of a "step-by-step" adoption of low-carbon hydrogen.