Japan Climate Curation #58 -Against All Odds: The Advent of Solid-State Batteries and Carbon Trading Markets in Japan

Editor’s note: This article was originally published on 6/13/2023 on Linkedin.

Welcome! I’m Hiroyasu Ichikawa, ichi, and this is issue 58 of “Japan Climate Curation” newsletter📬, which curates Japan-related climate news content every week since spring 2022. You can subscribe by clicking on the Linkedin page or via the Substack link below. [https://japanclimatecuration.substack.com]

Ten news articles were curated this week, covering topics such as Toyota’s solid-state battery EV bid, annual general meeting, and announcement of a series of carbon credit trading markets opening. Reuters investigative article reveals that climate funds have been directed to seemingly unrelated projects like coal plants, hotels, and chocolate shops.

I hope you find the list of articles below useful for reading (or skimming)!

[Note]: I am available to offer my research and consulting services for your Japan-related climate or net-zero business. The first 30 minutes of Zoom chat is free, and I could work at an hourly rate starting at $50. Please fill out your request using this link. Thank you!

[🇯🇵📰👀Japan Climate News Headlines]

【1】Toyota to roll out solid-state-battery EVs as soon as 2027 [6/13 Nikkei Asia]

• Toyota aims to launch an electric vehicle powered by a solid-state battery as early as 2027. The new technology, in which Toyota holds over 1,000 patents, allows for a more than doubled range and faster charging times, bringing the company’s global EV sales target to 3.5 million by 2030.

【2】Toyota Boss Faces Pushback Over EV Strategy in Shareholder Vote [6/12 WSJ]

• Toyota’s chairman Akio Toyoda faces criticism from shareholders for his cautious EV strategy, with no set transition date for a fully electric lineup. Under new CEO Koji Sato, Toyota is pushing towards fully electric cars, with commitments to carbon neutrality by 2050. Despite shareholder pushback, it’s unlikely that Toyoda will be ousted.

【3】[Opinionby the Editorial Board of WSJ] Targeting Toyota for Its Electric-Vehicle Heresy [6/4 WSJ]

• Toyota faces criticism from progressive investors and public pension funds for questioning the focus on electric vehicles (EVs). Critics target Chairman Akio Toyoda, pushing for greater transparency in climate lobbying. Toyota defends hybrids and plug-in hybrids as viable alternatives, and Toyoda points out EVs are not the sole answer to achieving carbon neutrality goals. This dispute illustrates how corporate governance can be exploited for progressive political aims.
• “Mr. Toyoda deserves support for speaking the truth about EVs, and it’s a shame he’s the only auto leader with the courage to do it.”

【4】Four Takeaways on the Future of the Global EV Market [6/8 Bloomberg] + Dismal Sales Undercut Carmakers Pushing Hydrogen Fuel Cells [6/8 Bloomberg]

• Despite efforts by Toyota and Hyundai, sales of hydrogen fuel-cell vehicles (FCVs) remain low, making up only 0.02% of global passenger vehicle sales. Issues like a lack of refueling infrastructure, a drop in sales compared to the previous year, and limited mass-market applications challenge their adoption.

Bloomberg

【5】[Opinion] Japan’s supply chain predicament [6/7 Financial Times]

• Japanese companies, with Toyota in the forefront, are under mounting pressure to reduce carbon emissions, facing shareholder and investor dissatisfaction over governance and climate policy. The broader climate change challenge poses a potential global competitive disadvantage for Japan, given its dependence on fossil fuels. This occurs as global tech companies ramp up operations in Japan, making a solid commitment to environmental standards essential.

【6】Japan ‘left behind’ by world over its lack of climate change measures [6/11 The Mainichi]

• Japan is reportedly “lagging behind” in global climate change negotiations, with limited support for its policies. The country’s stance on fossil fuel usage, opposition to a climate change “loss and damage” fund, and focus on controversial “co-firing” methods contribute to its isolation on the international stage.

【7】Tokyo Stock Exchange to start carbon credits trading around October [6/9 Nikkei Asia]

• Tokyo Stock Exchange is set to initiate carbon credit trading, primarily of J-Credits, around October. This move aligns with Japan’s carbon pricing scheme and aims to accelerate the nation’s journey toward carbon neutrality by 2050.

【8】Japan’s SBI to set up carbon emissions exchange [6/7 Nikkei Asia]

• Japan’s SBI Holdings, partnering with Tokyo-based Asuene, is launching a carbon emissions exchange named Carbon EX. The exchange, facilitating domestic and international carbon credit trade, seeks to enhance price transparency. The goal is to connect companies unable to cut their emissions with those offering carbon credits through renewable and conservation initiatives.

【9】Japan’s convenience stores step up efforts to cut food waste [6/10 Nikkei Asia]

• Japanese convenience store chains Lawson, Seven-Eleven, and FamilyMart are introducing products designed to reduce food waste. This includes sushi from surplus ingredients at Lawson, smoothies from discarded produce at Seven-Eleven, and other initiatives. The measures align with the growing environmental consciousness among the younger Japanese population.

【10】A pledge to fight climate change is sending money to strange places [6/1 A REUTERS SPECIAL REPORT]

• Wealthy nations have pledged $100 billion annually to fight climate change effects. However, Reuters investigation reveals that funds have been directed to seemingly unrelated projects like coal plants, hotels, and chocolate shops. Four countries — Italy, US, Belgium, and Japan — that funded these projects have counted them as “climate finance” without breaking any rules, as there are no official guidelines defining what qualifies as climate finance. Despite some organizations creating their own standards, the lack of a universal accountability system allows nations to create their own. The U.N. Climate Change secretariat insists it’s up to individual countries to impose uniform standards.
• Japan, the largest contributor to climate finance, has loaned at least $9 billion to projects perpetuating reliance on fossil fuels, some of which increase emissions. A notable case is a 1,200-megawatt coal-fired power plant in Bangladesh, which received at least $2.4 billion in Japanese climate finance. The plant will emit 6.8 million tons of CO2 annually despite generating more power with less coal. Yet, Japan counts the project as climate finance. Furthermore, Japan has financed other coal projects and natural gas projects totaling at least $6.6 billion. Japan’s decisions raise questions about the clarity of climate finance guidelines.

📬That’s all for this week! Thank you for reading(or skimming) 🙇. I hope you will have a wonderful week ahead!

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ichi (Hiroyasu Ichikawa)