Japan’s coal renaissance poses serious risks to businesses and investors
Tokyo, Japan — 29 May 2018 — Climate Analytics, in collaboration with Japan’s Renewable Energy Institute, has just published a new report looking at the impact of Japan’s coal plant plans on the Paris Agreement, and business. This report evaluates whether Japan’s energy policies and long-term targets are compatible with meeting the objectives of the Paris Agreement, and what this means for policymaking and investors.
To be in line with the Paris Agreement, developed countries need to phase out coal from their energy systems by 2030. Achieving the Paris Agreement temperature goal requires rapid decarbonisation of the power sector, toward zero emission by 2050. Unlike most developed countries, Japan is heading in the opposite direction with plans and financing set to increase carbon intense coal-fired power capacity. While prices of renewable sources are dropping quickly, the report clearly pointed out investment toward coal -fired power faces future risk.
Japan’s coal-fired phase-out, which is necessary to achieve emission reductions in line with the objectives of the Paris Agreement. Policymakers need to revise national targets and policies in order begin a smooth transition to a low-carbon future..