Japanese PM Kishida Must Stop Derailing the Global Energy Transition
A hard-hitting opinion piece in Newsweek
An opinion piece in Newsweek caught my eye. The authors — Gerry Arances (Center for Energy, Ecology, and Development) and Elizabeth Bast (Oil Change International) — pull no punches in their criticism of Prime Minister Kishida.
Their message, loud and clear, is the title of their article: Kishida must stop derailing the global energy transition.
They make a simple yet persuasive 3-step argument. These direct quotes guide us through their logic:
“Japan's energy strategy relies heavily on liquefied natural gas (LNG), burning ammonia and hydrogen at coal and gas power plants, and carbon capture and storage.”
“These technologies are insufficient to keep global warming under the 1.5 degrees Celsius threshold established by the Paris climate agreement.”
“Japan is sowing these insidious technologies throughout Southeast Asia utilizing a platform deceivingly named the "Asia Zero Emission Community (AZEC)," which is “nothing but a greenwashing ploy to support Japanese corporate interests under the guise of international cooperation.”
They go on to detail a number of gas projects that Japanese entities are involved in worldwide. Hence their conclusion that Japan is “derailing the global energy transition.”
Japan’s strategy is so set in stone that Arances and Bast doubt even multilateral negotiations like the upcoming US-Japan-Philippines talks can compel Japan to shift course.
They end with what is essentially a plea to Kishida:
Due to its enormous power and influence, Japan could become a leader in the climate movement by helping to increase the pace and scale of renewable energy development, rather than doing the opposite. If Prime Minister Kishida is sincere in his dedication to climate cooperation and securing peace and security in the region, he must end Japan's financing of fossil fuel projects.
I’m a persuaded reader. Japan’s international investments and diplomatic “soft power,” rather than its own greenhouse gas emissions, are precisely why anyone worried about decarbonization should at least stay lightly abreast of what Japan is doing, especially in low- and middle-income regions like Southeast Asia. I’m in wholehearted agreement there.
One challenge with short opinion pieces like this: Mostly because of the word limit, authors are forced to choose between the problem and the solution. Not both, and not in much detail.
In this piece, I wish the authors had more room to tell us the reasons that motivate Japanese policymakers and companies to expand their questionable energy solutions into foreign markets. They give the impression that this is sheer irrationality.
I think there’s more to the story. Japan’s energy strategy is shaped by the desire to gain a competitive edge in emerging technologies. Among the Japanese energy elites, this consideration easily trumps the urgency to effectively address the climate crisis.
Arances and Bast write in their piece that “Japan does not need all this gas as its demand is shrinking.” This is certainly true, but the reason why Japanese energy companies are doubling down on gas investments worldwide is because they’re fully aware that gas demand is set to rise. This is especially the case in the Asia-Pacific, where 80% of the global demand growth in 2023-2024 is coming from and where 82% of the world’s gas pipelines are being built.
And while it would be wonderful if Japan would unilaterally pivot to pouring all of its overseas investments into renewable energy development, there are larger forces encouraging Japan to stay the course. These include the excessively lenient (or rather non-existent) international rules on what counts as climate finance and weak or absent carbon pricing in developing countries.
Regardless, I’m glad pieces like this by authors representing highly respected organizations are shedding light on Japan’s role in the global energy transition.