Three opportunities for Japan in 2025

This briefing by the Climate Bonds Initiative outlines three strategic opportunities for Japan in 2025 to enhance energy security, establish global leadership in transition solutions, and position Tokyo as a hub for transition finance. It emphasizes the need for grid upgrades to unlock renewable energy, the adoption of science-based transition pathways for ASEAN partners, and the mitigation of methane leakage from LNG imports.

• Japan faces significant national security risks due to its heavy reliance on imported energy, importing 99.7% of its oil, 97.7% of its liquefied natural gas (LNG), and 99.6% of its coal.
• Japan could potentially reach 60-70% renewable energy by 2035 if it addresses grid connection challenges and offshore wind power. Currently, inadequate grid connections prevent solar power from Kyushu and wind power from Hokkaido from being sold to the Tokyo market.
• To strengthen interregional transmission, 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' that includes a 6-8 GW transmission line connecting Hokkaido and Tokyo.
• Japan is encouraged to lead transition efforts in ASEAN countries by providing technical guidance, infrastructure solutions, and disaster preparedness expertise, while collaborating with agencies like the Asian Development Bank.
• Tokyo has the potential to become Asia's transition finance capital by leveraging its strong financial sector, substantial capital pools, and existing initiatives like the GX Acceleration Agency and the Asia Zero Emission Community.
• The document warns that LNG may no longer be a viable transition fuel due to methane leakage; one study from October 2024 found the GHG footprint for LNG from the USA is 33% greater than coal when using GWP20. Japan imports 7% of its LNG from the USA.
• The Japanese government estimates that over JPY 150 trillion is required for the transition over the next decade, with JPY 130 trillion (USD 1 trillion) expected to come from the private sector.

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} }