Japan Climate Curation #59 -Toyota’s great week, ‘Transition bonds’ growth, Offshore wind, and more.
Editor’s note: This article was originally published on 6/20/2023 on Linkedin.
Welcome! I’m Hiroyasu Ichikawa, ichi, and this is issue 59 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]
Thirteen news articles were curated this week, covering topics such as Toyota’s EV commitment, ‘Transition bonds’ growth, offshore wind power development, and news around climate and society.
I hope you find the list of articles below useful for reading (or skimming)!
[Note]:
In-person Meetups will be held on Monday, June 26th, in the daytime (Marunouchi) and the evening (Shibuya), as I will be in Tokyo for the Climate Tech Day event on June 25th. If you are interested, please register using the form below 🙂 (Sorry, only in Japanese as this meetup was planned for the subscribers of the Climate Curation newsletter).
[🇯🇵📰👀Japan Climate News Headlines]
【1】Toyota Had a Great Week. The Company’s Chairman Did Not [6/16 Bloomberg]
- Toyota has seen its market value surge by $31.4 billion following the announcement of its EV strategy. However, Chairman Akio Toyoda’s shareholder support dipped to a record low, with critics arguing the company has lagged in the EV sector under his leadership.
【2】Toyota to expand Japan EV battery output with $850m subsidy [6/16 Nikkei Asia]
- Toyota will receive an $853m subsidy from Japan’s industry ministry to boost domestic EV battery production, which is crucial for Japan’s economic security. The automaker will expand output at two Panasonic joint ventures, invest in next-gen battery tech, and fund R&D on all-solid-state batteries. Toyota targets to sell 1.5m EVs in 2026 and 3.5m in 2030.
【3】Japanese EV makers ‘supercharge’ high-end market [6/15 NHK WORLD-JAPAN News]
- Electric vehicle sales could have been faster to take off in Japan. NHK World explores how high-end makers are trying to change that by offering luxury experiences and superfast charging.
【4】’Transition bonds’ are new favorite for Japanese investors [6/19 Nikkei Asia]
- As the push towards net-zero carbon emissions intensifies, Japanese investors are increasingly attracted to ‘transition bonds’. These bonds, a subset of ESG bonds, fund projects that aid issuers in transitioning to net zero.
- The oversubscription of Japan Airlines’ recent transition bond issuance highlighted the demand. Despite initial concerns of ‘greenwashing,’ transition bonds are gaining recognition as crucial tools for decarbonizing energy-intensive sectors. The Japanese government’s commitment to facilitating the transition to a carbon-neutral economy further bolsters its appeal.
【5】Interest in Japan Spilling Into Its Startups, VC Investor Says [6/19 Bloomberg]
- Coral Capital’s CEO, James Riney, suggests that Japan’s stable business climate garners interest from overseas investors, a stark contrast to the unpredictable tech situation in China. Prominent investors, like Warren Buffett, are pivoting towards Japan, leading to an exploration of various asset classes in the country.
- Despite these advancements, Japan needs to catch up to the US and China regarding its startup ecosystem, though a five-year government plan aims to redress this imbalance.
【6】Japan readies to lead the world in offshore wind [6/7 Energy Monitor]
European energy companies are investing in Japan as the country aims to create the world’s third-largest wind power fleet by 2040.
【7】Sojitz Cancels Hokkaido Wind Project on Costs, Local Objections [6/17 Bloomberg]
- Sojitz Corp. canceled a wind power plant project in Hokkaido due to escalating material costs and local environmental objections. This adds to Japan’s growing trend of wind project cancellations, creating a stumbling block for the government’s green energy goals.
- Like others from Kansai Electric Power Co. and Hitachi Zosen Corp., the project’s cancellation underlines the significant challenges facing renewable energy expansion in Japan.
【8】Consortium will promote Hokkaido as green-energy hub [6/19 NHK WORLD-JAPAN News]
- The Japanese government aims to convert Hokkaido into a hub for green technologies through a new consortium named Team Sapporo-Hokkaido.
- This 21-entity group will work towards Japan’s “Green Transformation,” exploring renewable energies, fostering talent, and attracting international investment. They are also considering a deregulation and tax incentive zone.
【9】Cluster-type wind turbines emerge as new energy source [6/18 Nikkei Asia]
Researchers are investigating cluster-type wind turbines as the future of clean energy. Kyushu University and startup Riamwind are exploring these multi-turbine systems, which offer increased energy output and reduced noise. Norway’s Wind Catching Systems also plans a large-scale project featuring this technology. Despite promising advances, these systems face challenges, including cost, wind pressure, and weather-related damage.
【10】Japan chemical makers to tap biomaterials for plastic [6/19 Nikkei Asia]
- Asahi Kasei and Sumitomo Chemical are set to produce plastic from bioethanol, targeting lower CO2 emissions. Asahi plans to start production by 2027, potentially utilizing Brazilian sugarcane-derived bioethanol. Biomass plastic demand is expected to surge, despite currently higher costs.
【11】How the climate crisis is supercharging Japan’s rainy season [6/14 The Japan Times] 🎧podcast
- The climate crisis in Japan is causing more intense and frequent rainy seasons, leading to heavy rainfall, landslides, and heat waves. The article highlights the aftermath of a major disaster in Hiroshima.
- Experts emphasize the importance of improved evacuation measures and public awareness of climate-related disasters.
【12】Japan’s Plan to Release Nuclear Wastewater Spurs Resistance in South Korea [6/16 Wall Street Journal]
- Japan’s proposal to discharge treated wastewater from the Fukushima nuclear plant into the ocean faces significant opposition in South Korea, risking disruptions to the thawing Seoul-Tokyo relations. While South Korean officials trust the plan’s safety, public skepticism and political resistance persist. The International Atomic Energy Agency’s forthcoming safety review could be crucial in shaping perceptions.
【13】Int’l body urges Tokyo gov’t to halt construction at lush Jingu Gaien park area [6/17 Mainichi English News]
- The International Association for Impact Assessment (IAIA)’s Japanese branch urged the Tokyo Metropolitan Government to pause the redevelopment of the Meiji Jingu Gaien area due to insufficient scientific debate.
- They also pointed out the undervalued urban greenery and biodiversity. The association recommended including ICOMOS Japan in the project assessment and declared the redevelopment unscientific and problematic. The ICOMOS in Paris is preparing to issue a “heritage alert” against the project.
📬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)
