Japan Sets New Targets to Cut Greenhouse Gas Emissions by 2040

Along with a revised energy plan and an updated industrial policy for the same period, the Japanese government announced new targets to reduce the nation's greenhouse gas emissions through 2040. A reliable energy supply, decarbonization, and industrial capacity to propel economic growth are the main goals of the policies, which aim to improve long-term policy stability for enterprises. Japan's 2030 target of a 46% reduction in greenhouse gas emissions is extended under the new climate policy, which calls for a 60% reduction from 2013 levels by 2035 and a 73% reduction by 2040.

As the world's fifth-largest carbon emitter strives to lessen its reliance on fossil fuels, the emissions-cutting objective first prompted calls for deeper reductions from experts and members of the ruling coalition.

As the nation strives for clean energy while supplying growing demand for electricity, the updated energy policy calls for renewables to make up as much as 50% of Japan's electricity mix by fiscal year 2040, with nuclear power adding another 20%.

Nuclear power will only account for 8.5% of Japan's electricity production in 2023 due to difficulties Japanese utilities have had restarting nuclear reactors since the Fukushima accident in 2011. The new energy strategy calls for the construction of next-generation reactors and eliminates the previous objective of reducing reliance on nuclear.

The cabinet also authorized a new national strategy that aligns with the emission target and energy plan, integrating decarbonization and industrial policy through 2040. It seeks to establish industrial clusters in regions abundant in nuclear power, renewable energy, and other low-carbon power sources.