Japan has much to gain by more ambitious climate policies

A heat wave is torching Japan with temperatures around 40 degrees C. Earlier this summer, torrential rain killed more than 200 people. As in other parts of the world, climate change models seem to be right in predicting more extreme weather.

However, on policy level Japan is still far from living up to the commitments of the Paris agreement. The recent revision of the Basic Energy Plan includes coal power providing 26 per cent of electricity production in the year 2030. So far, the government has not presented its long-term strategy for 2050. With investments in new coal plants, it seems unlikely that Japan can reduce emissions of greenhouse gases with 80-95 per cent to 2050, in the spirit of the Paris agreement.

As many have observed, the Ministry of Environment (MOE) is relatively weak in comparison with the powerful Ministry of Economy, Trade and Industry (METI). There are also strong links between the ruling LDP party and industry. However, the ambitious leadership of MOE and the skills in the climate department of the Foreign Ministry should not be underestimated.

One interesting initiative from MOE is the high-level group looking at finance and climate. Extreme weather events are for example causing large costs to insurance companies. The powerful Japanese banks have a large influence on energy investments. If they recognise the financial risks with investments in new coal power plants, climate policy would be facilitated. It is a hopeful sign of change in the financial sector that Nippon Life Insurance Co recently decided not to invest in new coal power plants, at home and abroad. Major bank group Sumitomo Mitsui is also adopting a more restrictive policy towards coal investments.

Another positive development is the Japan Climate Initiative, launched early this month. Over 100 companies, organisations and local governments participate and promise to reduce their impact on the climate in accordance with the Paris agreement. Among them are some of the largest Japanese multinationals.

Japan has a strong technological base and an ability to reach ambitious targets through common efforts. Other parts of the world (notably the European Union), are now drafting far-reaching plans for 2050, and China is using its large market to be an innovation leader. The government of Shinzo Abe has much to gain by more ambitious policies for long-term reduction of greenhouse gas emissions. Recent extreme weather events makes this even more clear.