Page 13 - AsiaElec Week 43 2022

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Japan urged to raise

carbon price to $30

JAPAN
JAPAN must rapidly raise its carbon price from co-firing and embrace carbon pricing as a means
$2.6 to $30 per tonne of CO2 if it is to prevent to deliver a faster transition to renewables and
gas to coal switching and drive forward the clean reduce emissions. Renewables, including off-
energy transition. shore wind, would bring benefit to the whole
Such a move was needed in order to meet the Japanese economy by reducing energy prices,
Japanese government’s goal of predominantly increasing energy security, and protecting Jap-
decarbonised power by 2035 and carbon neu- anese exports from the impacts of potential
trality by 2050, green think Carbon Tracker said. carbon border adjustment mechanisms being
However, Japan must drive forward a signif- considered in the EU and USA”.
icant acceleration in renewables deployment if The report found that Japan’s current level of
it is to meet these goals, even though, in Carbon ambition still fell short of what it could achieve.
Tracker’s eyes, its current policy framework is The country is too slow at deploying new renew-
insufficient. ables, while technical and regulatory obstacles
Indeed, the current energy crisis and power keep the price of building wind and solar capac-
supply crunch means that the Japanese power ity among the highest in the world.
sector is experiencing unprecedented stress A minimum carbon tax of $30, increasing to
owing to its deep dependence on fossil fuels. $60 by 2025 would remove the business case for
Carbon Tracker said that a transition to continued investment in coal generation while
renewables could decouple Japan from its his- reducing dramatically the window of oppor-
tory of high electricity bills, bring lower prices, tunity for gas power plants. By reinvesting the
increased stability, and greater energy security to proceeds from a carbon price of $60, the gov-
Japanese consumers. ernment could build more than 10 GW of new
To reach these goals, Tokyo must increase renewables annually.
carbon pricing to a minimum of $30, while By 2028, the role of gas plants as baseload and
immediately closing existing loopholes that flexibility providers can be replaced at a saving by
allow green funds to be diverted to unproven renewables and battery storage.
and inefficient “clean” fossil fuel technologies The report said that solar and wind can pro-
such as carbon capture and ammonia co-firing. vide a secure, reliable and affordable power sys-
Report author Lorenzo Sani, associate tem free from exposure to global commodity
power analyst at Carbon Tracker, said: “Now is and energy crises. Carbon pricing can be a key
the time for the Japanese government to move tool to deliver this transition in a fast and effi-
away from inefficient and costly coal-ammonia cient way.™

Week 43 25•October•2022 www. NEWSBASE .com P13