“Renewable Energy, Nuclear Power and Decarbonized Fossil Fuels are the Three Pillars - Achieving Carbon Neutrality”
Masakazu Toyoda (pictured), Chairman & CEO at the Institute of Energy Economics, Japan said in an interview with MIRUPLUS in Tokyo on December 22 that
"Technological Development of Renewable Energy, Nuclear Power and Decarbonized Fossil Fuels will be the Three Pillars" in order to reduce Green House Gas (GHG) emissions to virtually zero in 2050.
MIRUPLUS (MP)
Prime Minister Yoshihide Suga has announced carbon neutrality in 2050. How do you evaluate this first?
Toyoda
With many countries aiming to be carbon neutral, Japan made the announcement at a good time. Achieving this requires more effort by the public and private sectors than ever before. I think that if the public and private sectors work hand in hand, a solution can be made. I would like them to clarify a concrete roadmap in the future.
MP
The Ministry of Economy, Trade and Industry (METI) has stated in its execution plan to increase the ratio of renewable energy to 50-60% of the amount of electricity generated as of 2050. How do you think this will be reflected in the Basic Energy Plan to be formulated by the Government of Japan in mid-2021?
Toyoda
I don't know what the METI will draw, but in order to achieve the target, renewable energy, nuclear power, and decarbonized fossil fuels will be the three pillars. I have said that the renewable energy ratio is up to 50%. Wind and solar (depending on weather conditions) are power sources that cannot be achieved without backup. If fossil fuels are not used, storage batteries must be introduced, but the cost is so high. We will not be able to increase it to the extreme, but we also need a new nuclear power plant.
MP
As the Fukushima No.1 nuclear power plant accident has affected the nuclear power plant restart, there are many voices of opposition from the public to the new expansion, and it is difficult to gain support.
Toyoda
It is necessary to maintain at least 20-22% ratio of nuclear power plants in fiscal year 2030. I think we can increase the ratio even more. Let's make future technology using the nuclear power plant that exists now. In order to achieve this, it is important to restore trust with the people. We have no choice but to continue the dialogue. It is also important for the media to tell the truth.
MP
Carbon neutrality is a tough target for steel and the automotive industry etc. Are there any measures you can take to make it possible? The government has created a 2 trillion yen “decarbonization technology development support fund” in the third supplementary budget. It has included a tax reduction on decarbonization capital investment through tax reform.
Toyoda
First of all, it is technology development. In addition to thermal power with carbon dioxide (CO2) recovery and storage (CCS) functions, the idea of carbon recycling, such as the use of hydrogen and ammonia, has been recognized. The use of CO2 as a resource is advancing the development of CO2-absorbing concrete. It reduces cement and absorbs CO2 as it is. If cement is made at 100, it is halved by filling CO2. It is called negative carbon technology, but it lead to carbon neutrality that uses carbon recycling. In other words, technology that uses CO2 as a raw material.
Next is the development of the market. The challenge of using hydrogen and ammonia is cost reduction. If the cost is high, the entire industry will be in trouble. This could lead to the hollowing out of industries. If Japan use the 2 trillion yen to create a market with Asia, Europe and the United States, we can form a portfolio with the three pillars, as mentioned earlier.
I would like the METI to participate in the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26), scheduled to be held in Glasgow, UK in 2021. The global warming problem is not a fossil fuel, but a CO2 issue itself. Europe has a policy centered on renewable energy. In response to the principle of renewable energy, Japan should insist that renewable energy is not the only means. In that sense, I hope them to do a different campaign (at COP26) than before.
MP
In order to achieve the target in 2050, not only Europe but also Japan, China, and South Korea began to move all at once. On the other hand, in the U.S., President-elect Biden's inauguration is focusing on how to shift policy with the current Trump administration, which emphasizes fossil fuels.
Toyoda
Under the Trump administration, which emphasizes fossil fuels, state governments and others are working to decarbonize. They are also promoting nuclear energy policy. If the Biden administration took office on Jan 20 in 2021, we do not expect the policy shift to proceed rapidly. Considering the influence of Republicans in the congressional power map, the Biden administration's policies will continue to be moderated. However, the U.S. is also expected to make steady progress toward decarbonization, and Japan is expected to take initiatives in cooperation with the United States.
MP
Can Japan take the initiative in the international community?
Toyoda
When the year 2050 is reached, I think Japan is in a position where it can be central. Europe has become too much of a renewable energy-centric policy. As you know, there is a fossil prize, but I would like Japan to receive “the Decarbonized Fossil Award”.
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Naoya Abe
Former Bloomberg News reporter and editor
Capitol Intelligence Group (Washington D.C.) Tokyo bureau chief
Currently working as Managing editor of the news site MIRUPLUS
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