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Japan to Formulate New National Strategy for Green Transformation by 2040

Japan to Formulate New National Strategy for Green Transformation by 2040

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Key Impact Points:

  • Japan aims for carbon neutrality by 2050.
  • The new GX2.0 strategy will involve both public and private sectors.
  • Significant investments in AI and decarbonized power are planned.

Article:

Japan is gearing up to craft a comprehensive strategy aimed at decarbonization and industrial policy by 2040, according to recent announcements from the Prime Minister’s Office. Prime Minister Kishida, in the 11th GX (Green Transformation) Executive Meeting held on May 13, outlined the country’s ambitious goals and the steps necessary to achieve carbon neutrality by 2050.

Key Developments:

  • GX2.0 Strategy: The new strategy, known as GX2.0, builds on previous efforts (GX1.0) and introduces a holistic approach to transforming Japan’s energy policy. It focuses on creating a flexible structure to adapt to rapid changes in the global political, economic, societal, and technological landscapes.
  • Investment in AI and Decarbonized Power: Prime Minister Kishida highlighted the need for substantial investments in AI technology, equating the required decarbonized electricity to that produced by several nuclear power plants. This investment is crucial for maintaining Japan’s competitiveness and employment structure.
  • Energy Stability and Security: The strategy addresses the volatility of energy prices and emphasizes the importance of a stable energy supply. Measures include subsidies to mitigate price fluctuations and investments in long-term decarbonized power sources.

Quotes from the Prime Minister:At this conference, we have held discussions 10 times so far on new mechanisms for major changes in energy policy. Starting today, we have resumed discussions and presented a system that will actually work, providing answers one by one in the form of laws, budgets, tax systems, markets, and international certification.

We will develop the various mechanisms that have been formulated as GX1.0, and step by step overcome the most difficult hurdle to reach carbon neutrality in 2050. To achieve this, we will work towards decarbonization, which will be shared by the public and private sectors. This is the purpose of GX2.0.

Future Plans: The Japanese government plans to revise its basic energy plan and global warming countermeasure plan by next spring. These revisions will consider the need for a flexible approach to energy mix numbers and emphasize the importance of securing high-quality, decarbonized power supplies.

To further this initiative, Minister Saito, in charge of GX, will establish the GX2040 Leaders Panel. This panel will gather insights from a broad range of experts to shape the national strategy.

Related Article: J.D. Power Poll Shows Japan’s Retail Investors Care About Corporate Governance Too

As Japan moves forward with its decarbonization goals, the success of this strategy will hinge on effective collaboration between the public and private sectors, substantial investments in technology, and a flexible, adaptive approach to energy policy.

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