Japan approves new climate and energy policies targeting 2040 emissions cuts

Japan’s government has approved new climate, energy, and industrial policies aimed at reducing greenhouse gas (GHG) emissions by 2040, Reuters reported. The strategy focuses on decarbonisation, energy security, and industrial growth, forming part of Japan’s long-term plan to ensure business policy stability.

Japan has set a target to reduce GHG emissions by 46% from 2013 levels by 2030, 60% by 2035, and 73% by 2040. The updated targets, finalised by the environment and industry ministries, will be submitted to the United Nations in February 2025 as part of Japan’s Nationally Determined Contribution under the 2015 Paris Agreement.

The country’s revised energy policy aims for renewable sources to account for up to 50% of the electricity mix by 2040, with nuclear energy providing 20%. This marks a shift from Japan’s post-Fukushima approach, as the new strategy removes previous commitments to reducing nuclear dependence and supports the construction of next-generation reactors.

A national strategy integrating decarbonisation and industrial development through 2040 has also been approved, focusing on industrial clusters in regions with strong renewable and nuclear power potential. However, Japan’s offshore wind sector is facing challenges due to inflation and high costs, with Mitsubishi reviewing three domestic projects.