The updated energy policy targets renewables to comprise as much as 50% of Japan’s electricity mix by 2040. Credit: krungchingpixs/ Shutterstock.

Japan’s government has approved new climate, energy and industrial policies aimed at reducing greenhouse gas (GHG) emissions by 2040.

Reuters reported that the focus is on promoting decarbonisation, ensuring a stable energy supply and strengthening industrial capacity to drive economic growth.

This initiative is part of Japan’s long-term strategy to achieve business policy stability.

Japan is targeting a 46% reduction in GHG emissions from 2013 levels by 2030, a 60% reduction by 2035 and a 73% reduction by 2040.

Despite calls for deeper cuts, the environment and industry ministries finalised the targets, citing climate experts.

Japan is presenting its updated target, referred to as its Nationally Determined Contribution under the 2015 Paris Agreement, to the United Nations in February 2025.

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The updated energy policy targets renewables to comprise as much as 50% of Japan’s electricity mix by 2040, with nuclear energy providing an additional 20%.

Since the 2011 Fukushima disaster, Japanese utility companies have encountered difficulties in recommencing operations at nuclear reactors, restricting nuclear power to 8.5% of Japan’s electricity supply in 2023.

The new energy strategy eliminates the earlier objective of reducing dependence on nuclear energy and advocates for the construction of next-generation reactors.

A new national strategy integrating decarbonisation and industrial policy through to 2040, aligned with the emission target and energy plan, was also approved by the Cabinet.

It aims to develop industrial clusters in areas rich in renewable energy, nuclear power and other low-carbon power sources.

However, uncertainties are arising over Japan’s policies, as the domestic offshore wind sector encounters challenges due to inflation and elevated costs.

Mitsubishi is reviewing three domestic projects due to these pressures.

The move by US President Donald Trump to pull the US out of the Paris Agreement has added further uncertainty to global expansion initiatives.

In December 2024, Japan’s Ministry of Economy, Trade and Industry revealed a draft for a new fundamental energy strategy, pledging to optimise the use of renewable and nuclear energy to promote decarbonisation efforts.

The draft suggests a departure from the energy policy adopted after the 2011 Fukushima disaster, aiming for renewable energy to make up to 50% of Japan’s power generation mix by 2040, with nuclear energy comprising 20%.