Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Federation of Electric Power Companies of Japan (FEPC) appears to have engaged negatively on a number of climate change and energy policies in Japan. It has taken negative positions on greenhouse gas (GHG) emissions reduction targets and carbon pricing policies including the carbon tax, emissions trading, and the feed-in tariff (FIT), and has advocated for a continued role for high-GHG energy sources in the energy mix alongside renewable and blending with hydrogen and ammonia.
Top-line Messaging on Climate Policy: FEPC appears to have mixed top-line messaging on climate policy, while it recognizes some climate change science, it is unclear if it’s aligned with IPCC consensus. Its website, accessed in January 2024, recognized some climate change science, but was unclear if it recognized IPCC consensus, as it stated that the “environmental impact of global warming has not been fully elucidated scientifically.” In a hearing on carbon pricing held by Cabinet Secretariat in September 2024, FEPC supported carbon pricing while also emphasizing the importance of fairness among cost burden and fostering public understanding.
Engagement with Climate-Related Regulations: FEPC appears to have mixed positions on emissions trading system (ETS) and feed-in-tariff (FIT), while it shows support to such policies, it is unclear to what extent it’s supporting them. In a media article published on FEPC website in January 2023, it appeared to support emissions trading under Green Transformation (GX) Basic Plan, while emphasizing the necessity to consider the stable supply of energy and cost distribution. In a media article published on FEPC website in July 2024, it appeared to support emissions trading that is priced similarly with other countries and regions. In a Ministry of Economy, Trade and Industry (METI) hearing in July 2024, FEPC expressed opinion on renewable energy legislation such as post-FIT/post-feed-in-premium (FIP), however, it had no clear position on it.
Positioning on Energy Transition: FEPC has advocated for retaining high-GHG energy sources in Japan’s energy mix such as thermal power including LNG, hydrogen and ammonia, alongside renewable and nuclear energy. At the same time, FEPC supported the decarbonization of the building sector. In September 2024 METI hearing, September 2024 Carbon Pricing hearing hosted by Cabinet Secretariat, and November 2024 hearing hosted by METI, FEPC appeared to continue to advocate for long-term role of fossil fuel including fossil gas and coal in the energy mix, while emphasizing the energy security and stable supply. These arguments do not mention clear conditions on the deployment of CCS or methane abatement measures. In a METI hearing in November 2024 and August 2024, FEPC supported the long-term and maximized role of nuclear in the energy mix, emphasizing that it’s essential to realize carbon neutral by 2050 while maintaining the stable supply. However, it was unclear as to how it sees nuclear role with regards to a full transition towards a zero-emission energy system. In another METI hearing in August 2024, FEPC supported the decarbonization of building sector, specifically replacing fossil fuel heating technologies with renewable heat pumps. In May 2024, during the chairman’s monthly press conference, FEPC explained its position towards the revision of the Strategic Energy Plan. During the conference, the chairman emphasized the importance of stable supply and energy safety. While the chairman has supported the expansion of renewable and nuclear, it has also advocated for continued role of thermal as regulated power supply. it has mentioned the decarbonization by co-firing hydrogen and ammonia with thermal power, however, there is ambiguity around the timeline for the phaseout of thermal and decarbonizing hydrogen and ammonia production. In 2023, FEPC has continued to advocate for hydrogen and ammonia. In a number of METI hearings in November 2023, FEPC appeared to advocate for co-firing of hydrogen with fossil gas and expansion of hydrogen infrastructure, both without stating the need to fully decarbonize the hydrogen production. In a METI hearing in October 2023, FEPC appeared to advocate for co-firing of hydrogen and ammonia with thermal power without a clear timeline.