Main Economic Indicators (1)There are many similar points between Germany and Japan：ドイツと日本の類似点
Economy：Japan is the 3rd and Germany is the 4th largest GDP in the world. (2020)
Export：Germany is the 3rd and Japan is the 4th largest exporter in the world. (2020)
Land Area：Almost the same size; Japan (377,972 K㎡) and Germany (357,578 K㎡)
Aging Society：Japan is the 1st and Germany is the 6th top aging country in the world. (2019)
Industrial Structure：Compared with OECD countries, Germany and Japan comprise high share ofmanufacturing in each total value added(2018)

GHG Emission: Japan is the 5th and Germany is 6th largest emitters.
Ambitious Long-term target: Carbon Neutrality in 2050.

11

Main Economic Indicators(2)Differences between Germany and Japan ドイツと日本の相違点• Location
Germany locates in the center of the European Union(EU) region, while
Japan locates in the Asia Pacific Economic Cooperation(APEC) Region.
• MarketMarket activity of Germany is carried predominantly in EU, while that ofJapan is in APEC.
• Grid and Pipeline
Connecting to neighboring countries on the European continent allows
Germany to access flexibly to wide power grids and gas pipelines within theEuropean region.
On the other hand, Japan is an isolated island that has to be selfindependent in both power grids and gas pipelines.

2Self-Sufficiency Ratio in Primary Energy Supply in Major Countries
主要国の一次エネルギー供給自給率••

Japan is the second lowest energy self-sufficient country among OECD members.
In Japan, many nuclear power plants have not been able to restart since the Great East Japan Earthquake
2011. It resulted in lower energy self-sufficiency rate by far.

(Source) Agency for Natural Resources and Energy, “Energy in Japan 2020”3

44

Energy Self Sufficiency andElectricity Output in Major Countries
主要国の燃料自給率と電源構成• Countries that are rich innatural resources tend to utilize
these for domestic power
generation.
• Since Japan lacks domestic
natural resources, it needs todiversify its energy sources,
both in terms of fuel types andsources of imports, in order tosecure a stable supply of energy.
• Germany has achieved thehighest rate of renewableenergy among the majorcountries.

2019

2019(Source)

IEA, “World Energy Balances”

Energy Taxes

5

エネルギー関連諸税⚫ Other than Petroleum and Coal Tax, various types of taxes were introduced to fossil fuels.
⚫ As a result, a carbon equivalent energy taxes and FIT charge have reached JPY 6,300/tCO2. That of Japan’s
average energy prices is JPY25,000/tCO2.
(Source) Ministry of Economy, Trade and Industry, Study Group on Economic Approaches to Achieving Global Carbon Neutrality,2021
Ministry of Economy, Trade and Industry, ”The Long-term Climate Change Policy Platform”,2017
Gasoline

CO2
equivalentTax Rates(JPY/tCO2)

DieselJetFuel

LPG
Petroleum and coal tax rate
Tax for Climate Change Mitigation

Fuel oil Kerosene Gas

Coal(Source) Subcommittee on theutilization of carbon pricing
Central Environment
Council,2021

The Surcharge and Total Cost under the Feed-in Tariff Scheme

6

再生可能エネルギーの固定価格買取制度による賦課金と総コスト• Feed-In Tariff (FIT) scheme was introduced in 2012.
• The purchase costs have reached 3.8 trillion yen (approximately 36 billion USD)
• The surcharge cost to ordinary households based on the average model (260 kWh/month) has risen to 873yen/month and10476yen/year.
Surcharge Price

3.36Yen/kWh(Average model)

873 Yen/month
10,476Yen/year

FIT Costs

3.8
trillion yen

FY 2021(Source) Agency for Natural
Resources and Energy

Burden of Energy Bill in the Household Sector.

7

先進国の一般家庭における光熱費負担率
The ratio of energy utility costs to total household expenditures was calculated for countries for which data were available.
The household energy bill burden in Japan is the highest level among the major OECD countries.
This fact shows that the burden of energy costs on households is already significant even before additional carbon pricing enforcement.

7.0%

Energy utility cost per household expenditure (%, 2019)

6.0%
5.0%
4.0%
3.0%
2.0%

1.9%

2.3% 2.5% 2.5%

2.9% 3.0%

3.7%
3.3% 3.3% 3.4% 3.5%

3.9%

5.5% 5.8%

4.7%
4.3% 4.4% 4.5%

4.8%

1.0%

(Source) OECD Stat
Ministry of Internal Affairs and Communications, ”Household income andexpenditure Survey” 2020

Japan

SwedenDenmark

Belgium

GreeceFinlandFranceGermany

Austria

Spain

Italy

Netherlands

Portugal

Ireland

Luxembourg

Australia

United Kingdom

Canada0.0%

United States•••Regressive Nature of Energy Price: The Share of Energy Bill in Total Household Expenditure by Income groups.

8エネルギー価格の逆進性: 所得階層別の光熱費負担率
Since energy is a necessary goods for our daily life, a certain amount is consumed, regardless of the income level.
This results the burden of energy costs is greatest in the low-income household.
Household Income (全体の49％が世帯年収450万円以下)
世帯数

49％of Household belongs to under 4.5million YEN/year

9.0%
8.0%
7.0%
6.0%

4,500,000
8.1%

7.6% 5.7%

4,000,000
Number of Household3,500,000

Utilities Charge Burden (%)

3,000,000

5.0%

2,500,000

4.0%

3.5%

3.0%

3.1%

2,000,000
1,500,000

2.0%

1,000,000

1.0%

500,000

0.0%

0Household Income (unit:10,000yen)(Source) Calculate by the presenter using data from “Statistics Bureau of Japan, “National Survey of Family Income and Expenditure”, 2021

number of Household

Share of Energy Utility cost in
Total Expenditure
Per Household （％）

光熱費負担率

under 100
100～150150～200
200～250250～300
300～350350～400
400～450450～500
500～550550～600
600～650650～700
700～750750～800
800～850850～900
900～950950～1000
1000～1050
1050～1100
1100～1150
1150～1200
1200～1250
1250～1300
1300～1350
1350～1400
1400～1450
1450～1500
1500～15501550～1600
1600～1650
1650～1700
1700～1750
1750～1800
1800～1850
1850～1900
1900～1950
1950～2000••

Electricity Price for the Industry Sector

9

先進国の産業用電力価格• Japan's energy prices are among the highest in OECD due to the multiple policy approaches, the shutdown of nuclear
power, and the lack of domestic resources.
• The Japan’s electricity price for industrial sector is the second highest among OECD countries.

Total Electricity Price for Industry Sector 2019（USD/MWh）

NorwayUnited States
SwedenFinlandDenmark
Luxembourg
Hungary
CanadaNew Zealand
Slovenia
Korea
Netherlands
GreecePolandEstonia
Czech RepublicTurkey
Austria
FranceSwitzerland
Spain
LatviaIreland
Portugal
Belgium
Germany
Slovak Republic
UKChileJapan
Italy

200180160140120100806040200(Source)IEA, Energy
Prices and TaxesInternational Competitiveness: Electricity Price in Industry Sector in the APEC region.
国際競争力への影響: 産業用電力価では日本の価格はAPEC域内 では最も高額•Among the APEC economies, which accounts for more than 80% of Japan's trading partners, industrial electricity price in Japan is by far themost expensive.
It is 1.6 times higher than that of South Korea, the second highest in the region, and 2.4 times higher than that of the United States.
180

Electricity Price in Industry Sector in 2016

160

Electricigy Price (2010USD/MWh)

•

10140
120
10080
60
4020n/a0Japan

Korea

Thailand

MexicoChineseTaipeiIndonesia

CanadaUnitedStatesChina(Source)
IEA, World Energy Prices

Impact on Economy: High Energy Cost in Manufacturing Sectors

11

経済への影響: 製造業における高額なエネルギー価格••

Japan's manufacturing sector accounts for a large share in the total value added.
The highest energy prices cause to rise production costs and expose energy-intensive manufacturing to severe international competition.
Energy cost/total value added
エネルギーコスト負担率（対付加価値）

Total Energy Cost
エネルギーコスト(100 million yen 億円)

(%)
120%

20000
18000
16000

100%

95%

14000

80%

Electricity

12000
10000

60%

8000
6000

26%

4000
2000

Gas

12%

15%

12%
Pulp and20%
6%

Chemical and Cement and Iron and steel Non metallic

Machinary

Paper
Electricity

Oil
5%

Coal0
Textile40%

refinaryGasceramic
Oil0%minerals
Coal

Energy bill/total value added(source)Calculated by the presenter using data from METI “Economic Census for Business Activity 2016” and ANRE “Energy Balance Tables 2016”

Japanese energy-intensive industries are at a risk of withdrawal due to soaring
energy costs エネルギーコスト高騰によるエネルギー多消費産業事業の撤退⚫With Japan's far high energy price from international standards, industries
that are exposed to international competition are finding it difficult to passon the higher energy costs to customers. The industries are being forced totake measures such as relocating factories overseas, reducing personnel,
and cutting wages.

⚫Particularly for the energy-intensive industries, the impact of rising energy
costs due to rigorous climate policy is humongous. For example, the cost ofelectricity purchased by the steel industry is 782.2 billion yen (2014), and it
is estimated that a 1 yen/kWh increase in electricity rates would increase
the burden by 700 yen per ton of crude steel, equivalent to over 30% of its
profit (source: Federation of Steel Industries).
⚫Examples of how does rise in energy price impact on industries; Japanesealuminum industry, which was once the third largest industry in the world,
has been closed due to the sharp rise in electricity price by renewable FIT
and nuclear shutdown in 2014.

12

13

How would be theworld GHG emission,
if the Iron and Steelindustry were to betransferred to othercountries?

(Source) The Japan Iron and SteelFederation,”Activities of Japanese
Steel Industry to Combat GlobalWarming”
Report of “JISF’s Commitment to a
Low Carbon
Society” February 2021

Japan’s approach in 2030 towards carbon neutrality in 2050
Japan just amended it’s2030 emission reduction
target to -46% from -23%.
(1)Further reduction inenergy demand(2)More ambitious
implementation rate ofrenewable energy.
(3)Aiming on commercial
use of innovative zerocarbon energy, ammoniaand hydrogen.

Primary Energy Supply

Final Energy DemandFurther reduction inenergy demand

Revised target
2030

14

Previous target
2030

ZeroCarbon
Energy30％

Revised target
2030

ZeroCarbon
Energy24.3％

Previous target
2030

14
出典：総合資源エネルギー調査会 基本政策分科会、“エネルギー基本計画（素案）”2021年8月

Action Plan in Key Industry; the Green Growth Strategy for Carbon Neutrality in 2050
2050 年カーボンニュートラルに伴うグリーン成長戦略(Source)2050 年カーボンニュートラルに伴うグリーン成長戦略, the Green Growth Strategy for Carbon Neutrality in 2050 , in Japanese
https://www.meti.go.jp/press/2021/06/20210618005/20210618005-3.pdf

15

2
Fuel Anmonia(Source) The GreenGrowth Strategy forCarbon Neutrality in 2050 ,in Japanese1611Carbon Recycling(Source) The Green
Growth Strategy for
Carbon Neutrality in 2050 ,in Japanese

17