Global decarbonization: big steps forward,
Japan’s coal exit: one step forward,
one step back

Kiko Network

Annual Report2021

Greeting

The world targets 1.5°C
But Japan stumbles on ending coal
Glasgow Climate Pact is adopted.
Security concerns accelerate decarbonization moves.
In 2021, significant progress was made toward the 1.5°C target as part of global efforts to tackle
climate change. With momentum building for carbon neutrality by 2050 and the emergence of the
Biden administration in the United States, a key theme of the year was how to raise the emission
reduction targets for 2030. While the COVID-19 pandemic continued to disrupt life around the world
and face-to-face activities were limited, an increasing number of online webinars in Japan and overseas
boosted opportunities for citizens to learn, making this a year of expanding and evolving climate change awareness. Kiko Network also held
many webinars and Zoom meetings.
In August 2021, Working Group I of the United Nations Intergovernmental Panel on Climate Change (IPCC) released its part of the Sixth
Assessment Report, stating that it was unequivocal that human activity is causing climate change. It also showed more precisely the differences
between the impacts of 1.5°C and 2°C of warming and presented the paths for reducing emissions to meet those targets. In November 2021,
the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) was held in person and online
after a year’s delay, completing the Paris Agreement, and adopting the Glasgow Climate Pact with the 1.5°C goal. Just as attention shouldhave been turning toward further raising decarbonization targets and implementing actions, Russia invaded Ukraine in February 2022. The
world is now dealing with geopolitical imbalances in fossil fuels and food supplies, as well as underlying issues of interdependency. To respect
the sovereignty of other countries and human rights, and to ensure energy and food security, we need to accelerate the momentum toward
decarbonization by expanding the role of energy conservation and renewable energy.

Japan’s policy fixation on hydrogen and ammonia versus electricity system reforms
toward a decarbonized society
Japan announced in April 2021 that it would raise its 2030 emission reduction target to 46% (compared to 2013) and aim to increase it further
to 50%. However, the scenario for achieving this is similar to 2015’s announcement of a 2030 reduction target of 26% compared to 2013: basedon the use of nuclear and coal power, and relying on new technologies that are less effective in reducing emissions. Japan remains unwillingto pursue systemic reforms to expand the role of renewable energy. In particular, policies promoting co-firing of ammonia derived from fossil
fuels with coal-fired thermal power generation still have coal accounting for 19% of the energy mix in 2030. This approach makes no sense interms of emission reductions and economics. Nor is it consistent with the 1.5°C target, which requires a 50% emissions cut in the next decade.
Throughout the year, we issued many press releases calling for changes in these policies.
Japan’s “Green Growth Strategy Through Achieving Carbon Neutrality in 2050” relies on the preservation of thermal power generation byusing hydrogen, ammonia and CCUS, and actually threatens Japan’s hopes for decarbonization by 2050. In fact, amendments to the Act on
Rationalizing Energy Use in May 2022 designated hydrogen and ammonia produced from fossil fuels as “non-fossil energy sources.” Thegovernment is still trying to reinforce its long-standing policies. These are all complex and difficult problems, but it is crucial for citizens tocontinue calling for an end to coal.
In 2021, we promoted our efforts to decarbonize Japan in various regions around the country. Decarbonization has the potential to be apillar of sustainable regional development. The crisis in the Japanese electrical power system triggered by rising fuel prices as a result of thewar in Ukraine requires an urgent systemic review. For our children, we have the responsibility to achieve the 1.5°C target. Japan faces many
challenges, and much work remains.

Mie Asaoka

President, Kiko Network

Kiko Network, Annual Report 2021, CONTENTS
Greeting: The world targets 1.5 but Japan stumbles on ending coal ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・２

Our Achievements in 2021: Global decarbonization: big steps forward, Japan’s coal exit one step forward, one step back・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ３
Our Activities in 2021: Building an International Framework, Promoting Climate Actions in Japan, Decarbonizing Communities, Building Capacity・ ・４

Financial Report and List of Board Members ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・７

Cover photo: Action in front of Yokosuka Thermal Power Plant on day of Global Climate Strike, March 25, 2022

Our Achievement in 2021

Global decarbonization: big steps forward,
Japan’s coal exit: one step forward, one step backExpanding from Ending Coal to Decarbonizing

19% of the power mix in 2030 (based on the Sixth Strategic EnergyJapanPlan) has attracted criticism to Japan because developed countries

The year 2021 began with the inauguration of the Biden
administration and the United States’ return to the Paris Agreement.
In the context of climate change being a crucial issue requiring

are being called upon to exit coal by 2030. It will also undermine
efforts to achieve net zero by 2050.

Expanding corporate engagement

attention, alongside responses to COVID-19, efforts toward

However, there are also some positive changes. Having submitted

decarbonization around the world are accelerating. The Glasgow

a shareholder resolution to Mizuho Financial Group in March 2020,

Climate Pact was adopted at COP26 in Glasgow, Scotland, with

we submitted a resolution in 2021 as well, together with three

the international community’s target effectively being to limit global

individual investors affiliated with domestic and overseas NGOs,

warming to 1.5℃.

calling on the Mitsubishi UFJ Financial Group to adopt and disclosea plan to align its financing and investments with the goals ofBrochure published: “Glasgow Climate Pact:

the Paris Agreement. The vote was rejected at the shareholders’

The Path to 1.5°C as Shown at COP26”

meeting on June 29, but it won the support of approximately 23%
anof the shareholders with voting rights, once again showing thatimportant step toward the international

investors are concerned about climate change and are demanding

community’s efforts to limit warming tocorporate action.

The

Glasgow

ClimatePactis

1.5°C and decarbonize to achieve net
zero by 2050. This pamphlet explains
the path to the 1.5°C target and policy
issues facing Japan.
https://www.kikonet.org/info/publication/glasgowclimate-pact-brochure

Some progress on decarbonization, but somepolicies set Japan backMeanwhile, Japan is the only G7 country to continue its support
for coal-fired power generation, and its coal policies have taken
one step forward and one step back. Two new coal-fired power
generation projects were canceled, temporarily leaving Japan withno new domestic coal power projects in the works. (The cancelled
projects were the Nishi-Okinoyama [provisional name] involving
J-POWER and Ube Industries, and the Akita Port Thermal Power
Plant [provisional name] being considered by Kanden Energy
Solutions and Marubeni Corporation). However, the Genesis
Matsushima project by J-POWER suddenly surfaced, with proposals
to continue using coal by adding gasification facilities to the aged
and inefficient Matsushima coal-fired power plant, exposing the
problem of so-called “next generation” thermal power generationthat would burn hydrogen and ammonia. There are huge problems
with Japan purportedly trying to end the use of coal by co-firing withammonia or hydrogen, and trying to use hydrogen and ammonia
in power generation under the banner of “green innovation,” both
domestically and internationally, especially in Asian countries. While
several international organizations have issued papers questioning
the use of hydrogen and ammonia in the power sector, Japan’s

At the same time, Market Forces, an Australian environmentalorganization, submitted a similar shareholder resolution to
Sumitomo Corporation on climate change. In these ways, NGOs
as shareholders have been engaging to improve corporate value,
targeting a range of companies, from financial institutions that fundthe fossil fuel industry to companies that actually do the work. With
climate-related shareholder resolutions being submitted aroundthe world, some garnering high vote counts, we can see growing
support for net zero commitments. We will continue our activities
with the conviction that this new form of engagement will lead tostronger measures toward decarbonization to address climatechange.

growing commitment to hydrogen and ammonia is like a burning
ember ready to set off a new fire. The fact that coal would still sit at3

Our Activities in 2021

Building an International Framework

COP26 conference venue (left), Panel display for Fossil of the Day Award from CAN (right)

Latest warnings from climate science say actionneeded now(c) Masayoshi Iyoda, Kiko Network, 2021

be a 46% to 50% reduction compared to 2013.
Nevertheless, this reduction target is still not consistent with theDuring 2021 and 2022, three Working Groups released their parts

1.5℃ target of the Paris Agreement, and Japan has been reluctantof the IPCC’s Sixth Assessment Report. The report concluded thatto completely end coal power. Under Japan’s Sixth Strategic Energy“It is unequivocal that human influence has warmed the atmosphere,

Plan, the energy mix for 2030 still shows coal at 19%, and even that

ocean and land,” and served as a call for urgent action in every

will be a difficult reduction to achieve given the current situation. At

sector to significantly reduce greenhouse gas emissions, particularly

COP26, Prime Minister Kishida announced additional assistance ofCO₂, in order to minimize the adverse impacts of climate change.

up to US$10 billion over five years for decarbonization in Asia andbeyond, but he did not mention the 1.5℃ target or decarbonization.
Rather, he emphasized that support to Asian countries would be for

Decarbonization efforts gaining momentum

co-firing with hydrogen and ammonia (purportedly “zero emissions”)

globallyin thermal power generation. Japan was criticized internationallyAgainst the backdrop of these scientific warnings, decarbonization

and was presented the “Fossil of the Day Award” for blocking theefforts are gaining momentum globally. At the Climate Summit in April

achievement of the 1.5℃ target by continuing to use coal-fired power

2021, the United States, Canada, United Kingdom, European Union,

generation.

and other countries announced greater GHG reduction targets, andKiko Network monitored international discussions and engaged inJapan’s then-prime minister Yoshihide Suga announced a reduction

policy advocacy toward the Japanese government. At COP26, wetarget of 46% by 2030. The G7 Summit communiqué in June also

monitored negotiations and reported back to Japan through reports

included the acceleration of efforts toward the 1.5℃ target and an

and information sessions. We have also conducted collaborative

end to new direct government support for unabated international

international activities with Beyond Coal campaigns overseas, andthermal coal power generation by the end of 2021.

together with CAN-Japan member organizations, we have urged

Under the Glasgow Climate Pact adopted at COP26, 1.5℃

Japan to raise its emission reduction targets and strengthen

effectively became the goal. For the first time, the pact also included

the relevant policies, and have engaged in dialog with variousa phasedown of unabated coal power and a phase-out of inefficient

stakeholders. Despite all this, much still needs to change in order for

subsidies for fossil fuels. Implementation guidelines for the Paris

Japan to make a policy shift.

Agreement were also agreed upon, and although many national

With the conflict in Ukraine and the growing awareness thatemission reduction targets are still insufficient, it can be said that the

renewable energy needs to expand rapidly and energy independence

world has moved into the implementation phase of decarbonizationmust be urgently promoted to improve security, we will continue tomeasures. Meanwhile, efforts to decarbonize are accelerating by

work with other organizations, convey information to Japan about

civil society, local governments and the private sector, and various

international momentum to end coal power, and encourage Japan to

new initiatives were announced and actions done during COP26 in a

adopt more concrete policies.

push toward decarbonization.

Japan has made progress, but also faces
challenges
The Japanese government did show some progress. At the Climate
Summit, then-prime minister Suga announced that Japan would raise
its target for 2030, and just before COP26, Japan resubmitted its

4nationally determined contribution stating that the 2030 target would

Our Activities in 2021

Promoting climate actions in Japan

Kobe Coal Fired Power Plant(c) Hajime Yamamoto, Kiko Network, 2020

Science-based action

The rise of climate litigation in JapanFor the IPCC’s Sixth Assessment Report, Working Group I

Targeting plans to construct coal-fired power plants in Kobe

released its report in August 2021, and Working Group II in Marchand Yokosuka, local residents became plaintiffs and filed lawsuits

2022. It was the first update since the Fifth Assessment Report eight

demanding the government cancel its notices of finalization ofyears ago. The core science remains the same, but with this reportenvironmental assessment for the plants. In Kobe, after launching

the IPCC determined that it is unequivocal that global warming is due

the administrative lawsuit (naming the government), citizens filed

to human activities (Working Group I), and warned that its impacts

a civil lawsuit demanding the cancellation of the project, naming

were intensifying, with the most vulnerable populations being hit the

Kobelco Power No. 2 Inc. (the operator), Kobe Steel Corporation

hardest (Working Group 2).

(its parent company), and Kansai Electric Power Co. (which has

Kiko Network has been asserting that policymakers should accept

entered into a power contract). Kiko Network has been working

the science and base their policy on science. In particular, we haveto support these lawsuits. Activities conducted jointly with therepeatedly emphasized that if the world is to limit the temperature

plaintiffs and legal teams include inviting people to join the lawsuits,rise to 1.5°C relative to preindustrial levels, there is no room forholding information sessions, helping explain the lawsuits, operating

Japan to continue using fossil fuels as in current policy. We haverelated websites, and issuing newsletters. The lawsuits wererepeatedly told policymakers that policy changes are needed.

launched in 2018 and 2019 and are now in their final stages. The
hurdles for climate litigation are high in Japan, so they are veryrare in this country, but these lawsuits have shone a spotlight on

Toward a change in energy policy
On April 22, 2021, ahead of the Climate Summit hosted by USpresident Biden, then-prime minister Yoshihide Suga announced

policy contradictions and systemic issues in this country. Japan isswimming against the global tide of ending the use of coal in power
generation.

that Japan’s GHG emission reduction target for 2030 would beraised from the previous 26% to 46% relative to 2013, and thatJapan would consider raising it to 50%. Japan does need to raise its
reduction target as a responsible country, but a 46-50% reduction isstill not consistent with the 1.5°C target and is therefore not enough.
Therefore, we have been calling for a further increase.
Meanwhile, Japan’s Sixth Strategic Energy Plan, adopted by

On June 15, 2021, Kimiko Hirata, Kiko Network’s International
Director at the time, was awarded the Goldman Environmental
Prize. The award recognizes her collaborative efforts andachievements with Kiko Network and local community groups
to prevent the construction of new coal-fired power plants.

cabinet decision in October 2021, was revised in line with the goalof carbon neutrality by 2050 and the 2030 target. However, theprocess did not reflect citizen input, and failed to include any hintof ending coal and nuclear power, which Kiko Network and otherorganizations have been calling for. This means that no significant
changes were made to the existing planned power mix. In addition,
because Japan has come out in strong support of hydrogen,ammonia, CCUS and measures to extend the life of coal, ouractivities in 2021 have specifically addressed these issues throughreports, seminars, and other activities.

(c) Kimiko Hirata, Kiko Network, 2021

5

Our Activities in 2021

Decarbonizing Communities, Building Capacity“Go To Decarbonization” seminars in 47 prefectures
In response to the government’s public commitment to become

including the Power-Shift campaign, Green Alliance Japan, andFridays for Future groups around the country.

carbon neutral, we have been holding “Go to Decarbonization”
seminars since November 2020, with the aim of working with local
actors to explore the potential to create decarbonized communities.
In FY 2021 we held events in Aichi, Shizuoka, Kagawa, Hokkaido,
and Miyagi Prefectures. The events help promote information sharing
and collaboration on issues at the regional level, and also provide
opportunities for more than 200 people from around the country toparticipate in each event.

“Essay for Future” children’s essay contest
Continuing from 2019 and 2020, we held a new round of our essay
contest for primary, middle and high school students on the themeof stopping climate change. In the third year of the competition, we
created an “Action” category with an emphasis on actions that canbe done to change society. From Hokkaido in the north to Okinawa
in the south, we received 629 submissions from all over the country(primary school: 209, middle school: 383, high school: 37). From

Networking and supporting new energy producers

the submissions, a total of 17 recipients were selected for the grand

We have continued since 2018 to support efforts to establish new

prizes, awards of excellence, future awards, and special awards inenergy producers in order to activate local communities and promoteeach category. An online award ceremony and commemorative

renewable energy. In 2021, in conjunction with the Power Shiftmini-seminar were held on October 17 under the title of “Work that

campaign, we called for market reforms, pointing out the failures ofProtects the Environment,” which provided opportunities for recipientsthe current electricity market and the need to strengthen oversight

to interact and think about their future careers. The winners’ works arefunctions, which were revealed by electricity market price surges inpublished on the Kiko Network website.

January 2020. We also supported the development of new business

https://www.kikonet.org/local/education/essay-for-future-2021resultmodels in Japan that go beyond just electricity retailing. In 2020, theOUR ENERGY company, operating in cooperation with new power
producer TERA Energy, started “zero-yen” solar projects installing
solar power equipment at zero initial cost in Tokushima Prefecture.
Meanwhile, TANTAN Energy, which aims to develop a new widearea electric power business in northern Kyoto Prefecture, and which
Kiko Network has been involved in since its inception, is developing a
power purchase agreement (PPA) project to provide electricity directly
to the community from solar panels installed on a gymnasium and afood services center in Fukuchiyama City.

Seminar commemorating the publication “Energy
self-sufficiency and sustainable community
planning: Learning from environmental leader
Austria”
Based on six years of research, a research group in which a Kiko
Network member (staff and director) also participates published a

Education for climate action
The “Children’s Eco-Life Challenge” is a climate change education
program we have been providing to Kyoto schools. Adjusting to the
COVID-19 pandemic, we continued from 2020 to create educational

book through the publisher Showado in March 2020 with the above
title. Five seminars were held to commemorate the publication, with awide range of participants from citizens’ groups, local governments,
companies, researchers, and students.

videos, which teachers then use for practical learning sessions.
Inspired by our Eco-Life Challenge work in Kyoto, Takarazuka City
commissioned Kiko Network to work with local organizations to create“Takarakko Eco-Life Note”, educational material for elementary school
students about preventing global warming.

Climate communication
We published the Climate Action Guide,a booklet that introduces effective actions
people can take alone or together withothers to stop climate change.

Collaboration and networking
6

We collaborated with and supported many other initiatives,

https://www.kikonet.org/info/publication/kiko-action-guideFinancial Report & List of Board Members

Financial Report & List of Board Members
Kiko Network Financial Report for 2021
Due to the continued impact of the COVID-19 pandemic, in
FY 2021 we conducted our activities based on remote work and

FY2021Revenues
Category

Amount (JPY)

Memberships

3,497,847

online activities. Income from membership fees rose with an

Donations20,721,248

increase in the number of members, and donations increased

Grants29,597,716

significantly. Although grant revenues declined significantly

Honorariums, etc.

1,844,787

Contracts

26,093,800

due to some grants covering more than one fiscal year, grantSales

income is anticipated in the first half of FY 2022, so the net

Gain on sale of securities

result is not a large reduction. Due to an expansion of activities,

7,200
2,379,765

Other revenues

249,179

To t al84,391,542

total expenditures increased in all categories of program
expenditures. The closing balance at the end of the fiscal year
was down from the opening balance, but this is equivalent to the

FY2021 Expenditures
Category

Amount (JPY)

1. Program expenditures

reduction in grant funds. The net effect will be balanced out by

Outreach

3,636,151

grants expected in the first half of FY 2022. In order to further

Research and advocacy

3,742,161

Network building

1,038,900

International negotiations and policy work

1,452,340

accelerate the transition to decarbonization, we will strive ourutmost to maintain stable operations, increase our supporter
base, and make effective use of our financial resources.

Community and NGO support

731,470

Grant-funded programs

67,600,120

Expenses related to the sale of securities
Contract-funded programs

0
28,970,376

Program subtotal

107,171,518

2. Administrative expenditures
Salaries

3,016,275

Retirement benefits

139,300

Travel

56,012

Communications and shipping

264,803

Supplies

305,973

Office rent

157,166

Printing

129,146

Employee benefits

466,565

Tax and public dues

74,391Other expenditures

44,388Administrative subtotal

4,654,019

3. Income taxes - current

140,000

To t al111,965,537

Revenues and expenditures

FY2021 results

Opening balance

51,344,069

Total revenues

84,391,542

Total expenditures

111,965,537

Closing balance (March 31, 2022)

23,770,074

Closing balance (restricted portion)

10,443,318

Closing balance (unrestricted portion)

13,326,756

Revenue Breakdown
List of Board Members
President Mie Asaoka
Kuniyasu Inoue
Takuma Kani
Hiroshi Kanda
Ayako Sakurada
Yoshitsugu Sasaki
Kenro Taura
Ken Tsuzuku
Oomi Nishizono
Ikumi Hara
Tsuyoshi Hara

Shunichi Hiraoka
Kimiko Hirata
Takako Momoi
Motohiro Yamazaki
Naoyuki Yamagishi
Juta Wada
Auditor: Toshiyuki Ueda
Auditor: Yoshimichi Sakakibara
Auditor: Shigenori Fukushima

As of July 2022, in random order

7

Kiko Network Annual Report 2021

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Kiko Network (https://www.kikonet.org)
August 1st, 2022

Change the rules, not our climate.
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We at Kiko Network thank all our supporters for their past and future contributions to change the world
as we move toward a sustainable global society.
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