Policy Recommendations
to achieve the 2035 Japan scenario

Kimiko Hirata Ph.D
Executive Director, Climate Integratekhirata@climateintegrate.org

March１, 2023

Independent Think Tank
Mission – To protect our climateResearchEngagement
Communication
SupportIntegration

Science + Policy + Society
Different Issues
Multi-sectoral actors

AboutContents
Key Takeaway from 2035 Report by Berkeley lab• 90% decarbonization of Japan’s power sector by 2035 is possible• Benefits of decarbonizing Japan’s power sector• Shift to renewables is keyー Nuclear and cofiring of hydrogen and fuel ammonia are costly• Policy change is crucial for a speedy shift
to renewables

10 Recommendations for Japan• 3 elements for a national vision• 7 policy measures
3Vision 1

Grand Design

Grand DesignMeasures●1.5℃ aligned design●Intra-agency coordination●Industrial policies●Citizen-participation●Cost-effective
technologies●Clear roles for national,
subnational governments●Budget and fiscalmeasures

MiningNature Positive

WorldWorld
CO 2

nuclearWork

thermalCentralized

PeopleSystemic
ChangeDisparity

Energy Intensive

Work

Fossil Fuels

Equal Society
Renewables

PeopleFairnessboth-way
ﬂexibility
storage

Unequal Society

Top-downDistributed

Local Circulation

one-way
baseload

Governancewindsolar

Just Transition

Governance
Citizen Participation

Vision 2

Ambitious Targets

Ambitious Targets

Policy Review●GHG reductions &renewables targets●Coal-fired power:
phaseout●5-year target cycle●Gas-fired power:
ban on new construction●Sectoral targets●Hydrogen & ammonia:
reconsideration of policies●Nuclear: ban on newconstruction

Vision 3

Just Transition Strategies
National Strategies●Impact analysis●Support for affected areasand workers

Dialogue●Consensus building amongstakeholders●Creation of green industriesFinancial Support

Proposal 1

Effective Carbon Pricing

Incentives forEnergy Efficiency,
Renewables

Implementing Carbon
Pricing Schemes●Higher prices●Fair and transparent use of revenues●Carbon dividends, support for just transition

Proposal 2

Renewables for Communities

Utility-scale
Solar, Wind Power

Rooftop Solar,
Micro Hydro●Information disclosure, community participation●Zoning●Community-led power projects

Proposal 3

Flexibility in Power System

Market Mechanism

Grid Management

Grid Flexibility

Sector CouplingRenewable PowerElectricity→HeatElectrolysis→Hydrogen, Methane Gas

Electricity→Mobility

EVHeating, Cooling(i.e. heat pumps)

Storage Battery

Residential

Commercial

Industry

Back to Electricity

Transportation

Proposal 4

Redesigning Power Market

Capacity
Market Reform

Separation ofGeneration andRetail Units

Fair Burden
Sharing

Trading on
the Spot
MarketNegative
PricingProposal 5

Boosting Offshore Wind

Floating
OffshoreWind Target

Transmission
Lines

Port
Development

Centralized
SystemLocal
Electricity
Consumption

Domestic
Procurement

Centralized
Tasks andDuties

Centralized System

Local Consumption

Transmission
Infrastructure

Centralized Tasks
and Duties
New routefor Hokkaido,
Tohoku, Tokyo
Tohoku,Tokyo buildup

Kyushu-Chugoku
buildupCentral regionbuildup

New route for
Hokkaido, Tohoku

New route for
Tohoku, Tokyo

Promotion areas
Promising areas

Frequencychanger buildup

Potentially suitable areas
Oﬀshore wind ports

Proposal 6

Energy Efficiency

Industries

Buildings

Transportation●Review of energy
efficiency standards●Tougher standards●2035: newgasoline-powered car
sales end

●Emissions trading
scheme andcarbon tax●Energy saving
consultants●Mandatory PV for
new buildings●PV, insulation forexisting buildings●Bikeable, walkablecommunities●Efficient freighttransportBuildings

Systems, Facilities

Transportation

Resource saving,
low carbon materials,
wood, long-life, insulation

Better eﬃciency

Downsized,
better eﬃciency[Non-residential][Production line, equipment]

FactoryOﬃce

BoilerHeat
exchanger

PlaneShip

Piping[Residential]
Truck
Condominium

Apartment

Energy management

Stand-alone
house

AC

Refrigerator

Renewables

CarServer

Electriﬁcation

Train

Proposal 7

Fiscal Measures

Paris-aligned,
Cost-benefit
Analysis

Just Transition
SupportInvestment inClimate Tech

Summary/Conclusion
2035: 90% decarbonization of the power sector
10 Recommendations

National Vision• A grand design for a renewable shift• Ambitious targets and policy review• National strategies for a just transition
Policy Measures• Introducing carbon pricing at more appropriate levels• Expanding renewable energy in ways that benefit communities• Enhancing flexibility in Japan’s power system• Redesigning electricity markets to encourage fair competition• Boosting offshore wind development• Improving energy efficiency• Adopting fiscal measures to support the energy shift20Thank you!

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