Publication date: May 24, 2024
Japan to Set “GX 2040 Vision” to Accelerate Decarbonization Efforts
On May 13, Prime Minister Kishida convened the 11th Green Transformation (GX) Implementation Council, where he introduced the “GX 2.0” initiative, marking the next phase in Japan’s decarbonization strategy. “By enhancing the various mechanisms already established, we will tackle the most significant challenges to achieving carbon neutrality by 2050. We will present a realistic roadmap for decarbonization shared by the public and private sectors to achieve this,” he said.
The council plans to formulate a new national strategy called the “GX 2040 Vision,” which will guide decarbonization and industrial policy up to 2040. Specifically, the strategy will be shaped around four key areas: (1) Ensuring robust energy supply; (2) GX industrial location; (3) GX industrial structure; and (4) GX market creation.
Anticipating Energy Demand and Drafting GX 2040 Vision
The establishment of new semiconductor plants and data centers means domestic power demand is expected to rise this year for the first time in about two decades, and this trend is likely to continue. Clean energy equal to the output of multiple nuclear power plants will be required to supply these data centers, while electrification of heating and transport are also likely to add to power demand over coming years. It is therefore essential to expand the capacity of decarbonized power sources along with ensuring a stable power supply.
The new GX 2040 Vision will be drafted by the GX 2040 Leaders Panel (tentatively named), which will be launched in June in conjunction with the government’s review of the 7th Strategic Energy Plan and Global Warming Countermeasures, along with the start of experts’ discussions on carbon pricing. Based on the outcomes of these discussions, the GX Implementation Council will finalize the GX 2040 Vision within the current fiscal year.
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