Three opportunities for Japan in 2025

The briefing argues that Japan can mitigate its high reliance on energy imports—currently 99.7% for oil, 97.7% for LNG, and 99.6% for coal—by rapidly expanding domestic renewables and upgrading its national grid. It recommends implementing a JPY 7 trillion 'Master Plan' for interregional transmission to connect resources in Hokkaido and Kyushu to Tokyo. Internationally, the document urges Japan to lead ASEAN countries in transition and disaster resilience while ensuring its own transition measures remain science-based. It specifically warns against the use of LNG as a transition fuel due to methane leakage, noting one study found the GHG footprint of US LNG is 33% greater than coal using GWP20. Finally, it proposes leveraging Japan's financial sector and the GX Plan to make Tokyo a global hub for transition finance through supportive fund management rules and alignment with international standards.

• Japan's energy security is highly vulnerable due to extreme dependence on foreign imports: 99.7% of oil, 97.7% of liquefied natural gas (LNG), and 99.6% of coal.
• Japan could potentially reach 60-70% renewable energy by 2035 if grid connection and offshore wind challenges are resolved.
• Inadequate grid connections prevent the sale of wind power from Hokkaido and solar power from Kyushu to the Tokyo market, leading to wasted solar generation in Kyushu.
• The Ministry of Economy, Trade, and Industry (METI) and the Organisation of Cross-regional Coordination of Transmission Operators (OCCTO) have a JPY 7 trillion 'Master Plan' to strengthen interregional transmission, including a 6-8 GW line between Hokkaido and Tokyo.
• LNG is deemed unsuitable as a transition fuel due to potent methane leakage; a October 2024 study indicated the GHG footprint of LNG from the USA is 33% higher than coal when using GWP20.
• Japan requires over JPY 150 trillion for its transition over the next decade, with JPY 130 trillion (USD 1 trillion) expected to come from the private sector.
• To establish Tokyo as a transition finance capital, the document recommends aligning frameworks with international standards like the Climate Bonds Standard and Certification Scheme.

APA

Climate Bonds Initiative (2024). Three opportunities for Japan in 2025. https://www.climatebonds.net/files/documents/publications/cbi_japan_opp_2025_en_final_0.pdf

Chicago

Climate Bonds Initiative. Three opportunities for Japan in 2025. 2024. https://www.climatebonds.net/files/documents/publications/cbi_japan_opp_2025_en_final_0.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Three opportunities for Japan in 2025 |date=2024 |url=https://www.climatebonds.net/files/documents/publications/cbi_japan_opp_2025_en_final_0.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2024three, author = {{Climate Bonds Initiative}}, title = {{Three opportunities for Japan in 2025}}, institution = {Climate Bonds Initiative}, year = {2024}, url = {https://www.climatebonds.net/files/documents/publications/cbi_japan_opp_2025_en_final_0.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }