METI indicates the directions for clean energy strategy

METI indicates the directions for clean energy strategy

On 18th January, Prime Minister Fumio Kishida requested the government to work together as a whole to realize the carbon neutrality at “The Clean Energy Strategy Panel of Experts” which was newly established. Although Ministry of Economy, Trade and Industry (METI) plays a central role as the command post for the study of clean energy strategy, there are many policy issues that cross over to other ministries such as demand side and raising public awareness. METI will further discuss developing the strategies in cooperation with relevant ministries.

Mr.Kishida instructed to Ministry of Environment, Ministry of Education, Culture, Sports, Science and Technology, Ministry of Land, Infrastructure, Transport and Tourism, Ministry of Foreign Affairs, Ministry of Agriculture, Forestry and Fisheries, Ministry of Internal Affairs and Communications, Ministry of Health, Labour and Welfare besides METI. In addition, Minister in charge of Financial Affairs, Minister in Charge of New Capitalism, Minister for Digital, Minister of State for Science and Technology Policy participated.

Responding to the Prime Minister’s instructions, METI held a meeting on 19th January for the study on Clean Energy Strategy to organize the direction of the study, and summarized the direction of the study. This summarization is understood as the concrete steps for the business operators and citizens to shift their work and life style to the one toward the carbon neutrality.
In addition to the energy conversion of demand side, METI intends to establish more specific government policies to enable private companies to make decisions on the investment to the new growth areas. The cost associated with de-carbonization will be reduced to the maximum extent, but, at the same time, METI will study a mechanism by which the society can burden the cost as a whole.

The presentation was made at the joint meeting of “The Green Transformation Promotion Subcommittee” of the Council of Industrial Structure (an advisory body of the Minister of Economy, Trade and Industry) and “Subcommittee on Next-generation energy supply and demand structure study with an eye on carbon neutrality in 2050” of the Advisory Committee for Energy and Natural Resources.

The key is how to promote private investment. In the case of an ammonia fuel, the government should provide with the detail information of the schedule for increasing domestic demand, facility installation costs, future price forecasts and the expected overseas demand for Japanese technology in order to attract the investment. As for the energy transition in the manufacturing industry, the measures to ensure corporate strength to overcome large investments will be a point of discussion. On the other hand, initiatives related to education, science and technology, labor, telecommunications, agricultural and fisheries, transportation and regional matters are also necessary to achieve carbon neutrality, and the relevant ministries and agencies will discuss these issues and reflect them in the discussions at the joint meeting.