Mapping the Energy Future

This episode is talking about “Challenges for the power sector: The need for changes”. The power sector is becoming more important than ever because it holds the key to decarbonization. A highly digitalized society cannot be maintained without stability in the power sector. Nevertheless, the power sector is currently facing several challenges which are not limited to a single country but are similar among many of the advanced economies. It is worth looking into actions that would be necessary and appropriate for all countries. Belief in the laissez-faire of the day-ahead market to resolve everything is becoming outdated. New policy interventions and systems are required.

This episode is talking about “ Japan’s Hydrogen Promotion Act: Framework for Market Creation”. In contrast to the significant number of project announcements to supply clean hydrogen, the official number of offtake agreements has remained very limited. Japan’s Hydrogen Promotion Act (HPA), authorized by Japan’s Diet on May 17, could be the trigger to create a global demand for clean hydrogen, contributing to the development of a global hydrogen market.

This episode is talking about “CBAM vs. International Trade”. After a three-month deadline extension, the EU’s CBAM (Carbon Border Adjustment Mechanism) is just about to complete its first quarterly reporting of the transitional period. As CBAM’s full implementation is scheduled for January 1st 2026, Mr. Terazawa believe it is time to assess its potential impact on international trade and to adopt necessary measures needed to address any negative impacts.

This episode is talking about “Pause on Pending Approvals of LNG Exports: Problems that need to be addressed”. On January 26, the Biden Administration announced a pause to the LNG export authorization process to non-FTA countries. It came as a big shock to LNG importing countries such as Japan. The responses in the US were mixed. Some experts, including those in the US administration, argue that the impact of the pause is very limited while other may consider it as sending the wrong message to the market. Mr. Terazawa, CEO, IEEJ, believe that we must investigate the reasoning behind these differences.

This episode is talking about “The gap between aspiration and reality for carbon neutrality”. G7 members’ GHG reduction is off- track from NDCs & carbon neutrality paths, and energy intensity improvement is off-track from the IEA-NZE scenario. Such gap between aspiration and reality for carbon neutrality necessitates “Plan B”. Mr. Terazawa, CEO, IEEJ, will talk about need for preparing for “Plan B”.

This episode is talking about “Progress Report of Japan’s GX Strategy”. One year has passed since Prime Minister Kishida announced Japan’s GX (Green Transformation) Strategy in December 2022. Mr. Terazawa, CEO, IEEJ, will share the progress made so far.

This episode is talking about “COP 28: Inclusiveness, Breadth, Challenges”. The international press focused on the reference to fossil fuels in the COP 28 final document and was relieved to find a compromise was reached on the language through the use of the expression “transitioning away from fossil fuels”. But there were a lot more in the COP 28 that deserve attention.

This episode is talking about “Demand Side Approaches to Critical Minerals”. As the world pursues its energy transition towards carbon neutrality, we cannot avoid discussing and sufficiently stressing the importance of critical minerals. Concerns are rapidly rising over the sufficiency of their supply and concentration of suppliers. So far, measures to tackle these concerns have largely been addressing the supply side. Why are we not looking into measures to adjust the demand side as well?

This episode is talking about “Long transition with uncertainties”.　IEEJ recently published its official annual global energy outlook for 2050. This is a forecast based outlook, not a back-cast based outlook such as the NZE scenario by IEA. What is most likely to happen based on a set of reasonable and well-grounded assumptions as portrayed by forecast outlooks may be quite different from what needs to happen to realize a pre-determined objective, such as carbon neutrality by 2050, as portrayed by back-cast outlooks.

This episode is talking about “The rare earths embargo of 2010 and its lessons”. There are strong interests in the need to enhance the resilience of the supply chains of critical minerals these days. This point was clearly emphasized in both the G7 and G20 Leaders’ Declaration. A high-level international conference on critical minerals to which many ministers participated has just been hosted by IEA, on September 28.