Renewable Energy Support, Coal Phase Out

Published:
Japan has made incremental progress in expanding renewable energy, including developments in offshore wind and revisions to grid access rules. However, policy and financial support remain insufficient to unlock the full potential of decarbonized domestic energy sources. Regulatory complexity, limited market access for new entrants, and continued government support for controversial technologies slow down the transition. At the same time, Japan’s coal phase-out commitments remain vague. Recent announcements, such as halting the operation of “inefficient” coal power plants, mostly reiterate previously stated intentions. No clear timeline has been provided for a full exit from coal.

Recommendations

  The Japanese government should:
  • Scale up investment and policy support for renewable energy, including streamlined permitting, improved grid access, and financial incentives
  • Ensure a level playing field for domestic and foreign companies in the renewable energy sector
  • Clearly signal the end of coal power, with a binding timeline and no loopholes based on unproven or high-emission technologies
A credible and ambitious transition strategy is essential to guide private investment and align Japan with its international climate commitments. ble energy projects. This includes promoting research and development in renewable technologies and creating a favorable environment for the adoption of clean energy solutions, including those provided by non-Japanese companies. Clearer signals of a coal phase-out should be given, to facilitate reorientation of investments towards clean sources of energy; uncertain technologies such as ammonia co-firing should not be used as excuses to maintain investments in coal power plants in Japan and in foreign countries.