Impact of Ukraine Crisis on CN goal
➢ Visible impact of Ukraine crisis on energy & economy• More need for energy security and stable supply• Re-focus on nuclear power• Hyper inflation of fossil fuels & food
⇒ USFR and ECB Changed monetary policy⇒Cheaper yen⇒higher import price(Japan’s trade deficit in August was ¥ 2.8 T, which is biggest since 1979)• Risk of global economic downturn➢ Impact on CN goala. High fossil fuel price may accelerate investment to renewable energy projects andintroduction of EVs
b. In shorter term, use of fossil fuels and nuclear power will increase to cope with sharp cut ofRussian gas and oilc. Transition path and policy toward 2030 may be changed. Transition to gas from coal using
cheap Russian gas is no longer an option, and nuclear power will be an important alternatived. CN goal in 2050 will staye. Dependence on cheaper Russian gas and oil in emerging economies will increase, which may
slow down their CN efforts.

Japan’s energy constraints⚫ Self sufficiency % in 2020
USA 106, UK 75, France 55, Germany 35, Japan 11⚫ Dependency on Russian energy in 2020 (%)
OilNatural gas

CoalJapan4911France02729Germany344348

UK

11536

⚫ No connecting power grid and pipeline with other nations⚫ Top 4 cumulative capacity of PVP in 2021 (IEA)
Country

Total Capacity (GW)

Capacity per km2 (KW)

China

308.5

32.1

EU

178.7

42.2

USA

123

12.5

Japan

78.2

206.9

CO2 emissions in each country
Global CO2 Emissions from Energy Consumption（2018)

Other(64.9)
19.4%
Australia (3.8) 1.1%

China(92.6)
28.2%

Brazil (4.1) 1.2%
South Africa (4.3) 1.3%

China(95.3)
28.4%

Mexico (4.5) 1.3%

Global CO2 Emissions
33.5 Bt

Saudi Arabia (4.9) 1.5%
Indonesia (5.4) 1.6%
Canada (5.7) 1.7%
Iran (5.8) 1.7%
Rep. of Korea (6.1) 1.8%
※Unit: 100 million tons of CO2※The 15 EU member states are themember states at the time of
the COP3 (Kyoto Conference).
※Due to rounding, the total
emissions of each country may
not match the total global
emissions.

Japan(10.8) Russia
3.2% (15.9)
4.7%
India(21.6)
6.6%

U.S.

India

EU(15(23.1)
countries※)
6.9%(25.4) 7.7%

EU 28(47.6)
countries
14.5%(31.5) 9.4%

U.S.
(49.2)
14.7%

EU(15 countries)※(24.8) 7.4%
Germany(7.0) 2.1%

FranceItaly
U.K.
(3.0) 0.9% (3.2) 0.9% (3.5) 1.1%

Source：Created by Minister of the Environment based on IEA「CO2 EMISSIONS FROM FUEL COMBUSTION」 2020 EDITION

２

Greenhouse Gas Emissions in Japan

６Emissions(Billion t-CO2 eq.)

1,408 Mt

1,381 Mt

1,395 Mt
1,360 Mt

1.4

1,396 Mt
1,354 Mt

1,322 Mt
1.3

1,275 Mt

1,303 Mt

1,250 Mt

1,359 Mt

1,149 Mt

1,321 Mt1,304 Mt
1,291 Mt[-5.1% from FY2019]〈-18.4% from FY2013〉(-16.8% from FY2005)

1,247 Mt
1,211 Mt

1.2

1.1

1.001990

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
(Fiscal year)

1. These preliminary figures for FY2020 were estimated based on annual figures in various statistics. Some annual figures from FY2019 weretemporarily used in place of FY2020 figures that have yet to be released. Moreover, some estimation methodologies are currently being
reconsidered in order to make more accurate estimations of emissions for the final figures. As such, the final figures to be released in April 2022
may differ from the preliminary figures in this summary. Removals by measures for forests and other carbon sinks will also be estimated andannounced at the time of the release of the final figures.The figures in this summary differ from the preliminary figures for FY2019 due to therecalculation of emissions based on annual reported data of various statistics that have become available since the calculation of the preliminary
figures for FY2019 (released on December 8, 2020) and future revisions of calculation methods.
2. Total GHG emissions for each FY and percentage changes from previous years do not include removals by measures for forests and other carbon
sinks.
Source: Ministry of Environment

Japan’s total greenhouse gas emissions in fiscal year (FY) 2020 (preliminary figures)Japan’s new 2030 emissions reduction target

７

Japan aims to reduce its GHG emissions by 46% in FY2030 from FY2013 levels, setting an ambitious
target which is aligned with the long-term goal of achieving net-zero by 2050. Furthermore, Japan
will continue strenuous efforts in its challenge to meet the lofty goal of cutting its emission by 50%.
（Announced by the Prime Minister SUGA at 45th meeting of the Global Warming Prevention Headquarters on 22 April 2021)（milliont-CO2eq）

Japan’s emissions reduction target

1,400

1,200

Previous target
26% by FY2030
from FY2013

1,000800

2030 reduction target

From 2013(Conversion)

Japan : 46% from FY2013

46%

50-52％ from 2005

45.1-47.3％

Canada: 40-45％ from 2005

38.9-44.0％

EU: at least 55% from 1990

at least 44.1％

UK: at least 68% from 1990

at least 55.1％

U.S. :

2030 reduction targets of G7 countries

600

New target
46% by FY2030
from FY2013 levels

400（continue strenuous efforts
to 50%）

200

2050
Net-zero emissions

02010

2015

2020

2025

2030

2035

2040

2045

2050 （Year）

<Reference>

2030 energy mix ：Demand for Power and Power Mix
Demand for PowerPower Mix
Ambitious reinforcement ofenergy saving
approx. 230 TWh(Compared with pre-measures:approx. ▲20% )approx. 1,065 TWhapprox. 1,024 TWhapprox. 930–940
TWh
Renewables

Non-approx. 18%fossil

Hydrogen/ammonia

approx. 1%

approx. 22–24%
Nonfossil
approx.
44%

approx.
24%

Nuclear approx. 6%

Economic growth: 1.4%/Y
Population: 0.6% decrease
Passenger volume:
2% decrease

approx. 36–38%

Non- approx. 20–22%
fossilapprox.
59%

approx. 37%

approx. 989.6 TWhapprox. 20–22%

approx. 980.8 TWhapprox. 27%

Fossilapprox.
76%

approx. 870 TWh

Fossilapprox.
56%

approx. 20%
Fossilapprox.
41%

Coal approx. 32%
approx.
19%

Oil, etc. approx. 7%

FY 2013

FY 2030
FY 2030 (Formulatedin 2015)

FY 2019

approx. 2%

approx. 26%

approx. 3%

FY 2030

FY 2030 (Formulated in 2015)(Source) METI “Strategic Energy Plan (draft)” (Document 2) p.18, for the 46th meeting of the Strategic Policy Committee of the Advisory Committee for Natural Resources and Energy, July 21,
2021

<Reference>

2050 Energy Mix
Image of Power Mix toward carbon neutrality
2018
1.06 billion tons

Non-power sectors

Buildings
110 million tons

Industry
300 million
tonsTransport
200 million
tons

2030 mix
0.93 billion tons
(down 25%)2050
Net 0% with emissions
offset by absorptions（down 100%）(Figures represent references for deepening
discussions. Multiple scenarios that are notlimited to the following should be considered.)

Buildings
90 million tons
Industry
330 million
tonsTransport
150 million
tonsElectrification

Power demand:up 30-50%

Hydrogen, methanation, synthetic
fuel, biomass
Fossil fuels

Maximum use ofCCUS

Power sector

Decarbonized power sources
450 million
tons

360 million
tons

Renewables
Nuclear
CCUS-equipped fossil fuelpower plants and carbon
recycling
Hydrogen/ammonia

Carbonelimination

Afforestation, direct air capture
with carbon storage (DACCS), etc.
*Figures represent energyrelated CO2 emissions.
(Source) Secretariat of the Committee on the Growth Strategy, Cabinet Secretariat “Green Growth Strategy through Achieving Carbon Neutrality”(Document 1) p.6, for the sixth meeting of the Committee on the Growth Strategy, December 25, 2020

GHG Emission Reduction Targets for Major Countries

Clean energy Strategy (May 2022)(1)➢Energy Security• Response to the Ukraine Crisis and tight supply/demand of electricity➢Future of Energy Policy• Stable supply of electricity• Energy efficiency• Nuclear :promote restarting, back-end, enhance R&D• Maximum introduction of renewable energy• Hydrogen/ammonia• Carbon-neutral industrial complex ports• Promotion of CCUS

Clean Energy Strategy (May 2022)(2)➢ Reform of the economy, society & industrial structure➢ Industrial GX• Hydrogen/ammonia• Offshore wind power• Batteries• Nuclear power• Carbon recycling: CC & synthetic fuels etc• Steelmaking: development and implementation of innovative technologies (H2 reduction etc)
• Automobile: all new passenger vehicle sales will be electrically driven by 2035
• Transport: CN by 2050 in shipping, R&D of hydrogen aircraft, renewable energy for railways• Houses/buildings, infrastructure• Food/ Agriculture, forestry and fishery• CCS• Negative emission➢ Transition of energy supply/demand structure in industry

Clean Energy Strategy (May 2022)(3)➢ Development of social system and infrastructure for GX• Decabonization X Economic growth/development : 5 pillars

1.National Budgetary measures (support)
Unprecedented scale(20T yen) and period(10y) of government support for private
investment financed by green national bond
2. Regulation/systems
Regulatory measures will be established to create a new market and boost private
investment
3. Financial package
Financial systems will be enhanced in transition, innovation and green
4. GX League
Creation of emissions trading system, pro-growth carbon pricing
5. Global Strategy
Creation of Asia zero emission community

Prime Minister Kishida’s Key Instructions(at the second meeting of the GX Implementation Council on August 24, 2022)• The Russian invasion of Ukraine has totally changed the world’s energy situation and caused
a major upheaval in the global energy supply-demand structure. Against this backdrop, Japan
must strike a good balance between overcoming the current crisis and promoting GX, whilebearing future crisis scenarios in mind. Positioning it as its highest priority issue, the Kishida
Cabinet will take all possible measures in advance to minimize the impact of any
contingencies in the world on the lives of people.
• Regarding nuclear power plants in particular, the Government will stand at theforefront of every effort toward the restart of nuclear power stations• drastically accelerating the development of power systems, speeding up the installationof fixed storage batteries, and promoting offshore wind power and other electricity
sources.
• concerning nuclear power, to resume operations, maximum utilization of existing
nuclear power plants including the extension of their operation period with ensuring
their safety being a major precondition, and development and construction of nextgeneration advanced reactors that incorporate new safety mechanisms.
• renewable energy and nuclear power are indispensable decarbonized energy sources inadvancing GX. I ask you to speed up discussions, so that we can reach a specific conclusion
on all the measures, including institutional frameworks for enhancing these energy sources tokeep them as options available into the future and how the concerned parties should makeefforts to further deepen public understanding, by the end of the year.
• In the next meeting and onward, we will accelerate discussions toward speeding up and frontloading GX implementation, such as a basic framework of growth-oriented carbon pricing,transformation of industrial structure, and a global strategy, and formulate concrete
GX and growth strategies by the end of the year.”