Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Japan Chemical Industry Association (JCIA) seems to have high engagement with climate and energy policy in Japan. It appears to be supporting Japan’s Carbon Neutrality by 2050 Goal, while emphasizing on the need for solutions and pathways. It has also appeared to support carbon pricing with the condition that it must be growth oriented. The entity appeared to oppose EU CBAM and are advocating for making the exemption/refund permanent for petroleum coal tax on petroleum products in Japan.
Top-line Messaging on Climate Policy: JCIA appears to have a mixed position on top-line messaging on climate policy. In 2021, JCIA has supported the 2050 carbon neutrality goal but appear to emphasize the need for climate solutions and pathways that heavily rely on technology to reduce emissions from GHG-intense energy sources in the long-term, as stated in their position paper published in May 2021. Since then, InfluenceMap was not able to find its statement on carbon neutrality. In September 2023, JCIA submitted the FY2024 Tax Revision Request, appearing to support carbon pricing with the condition that it must be growth oriented.
Engagement with Climate-Related Regulations: JCIA appears to have engaged negatively with climate-related regulations in Japan and Europe. In April 2022, in a Joint Industry Recommendation on CBAM submitted to EU, advocated for the exclusion of specific sectors, including chemical products, from the EU’s carbon border adjustment mechanism. In October 2022, in a FY2023 Tax Reform Request co-submitted with other industry associations such as JISF and PAJ, it appeared to oppose carbon pricing in Green Transformation (GX) roadmap. At a METI hearing in January 2024, JCIA didn’t expressed the clear position on greenhouse gas emissions standards.
Positioning on Energy Transition: JCIA appears to have negative position on energy transition in Japan. JCIA supports decarbonization of chemical industry in multiple occasions, including at METI hearing in October 2022, January 2023, in January 2024. However, at a technology-level, JCIA appears to have ambiguous positions. At a METI hearing on industry in January 2022, JCIA appears to support expanded use of bioenergy, however, there is some ambiguity around the timeframe in line with IPCC guidance. At a METI hearing on CCS in February 2022, it appeared to support CCS without mentioning risks and uncertainties mentioned in IPCC guidance. In the FY2024 Tax Revision Request submitted in September 2023, JCIA appeared to advocate for making the exemption/refund permanent for petroleum coal tax on petroleum products. Its position on fossil fuel subsidies remained unchanged since July 2021.