IEEFA Asia Newsletter

Welcome

This month's research features an in-depth report on the key barriers to renewable energy development in Japan. Renewable energy growth has slowed recently, creating a widening gap with national targets and raising concerns about meeting the country's 2030 goal of 36%–38% renewables and achieving carbon neutrality by 2050.

Key findings include:

• Structural challenges, including electric utilities' reluctance to invest in renewable energy, the underutilization of Non-Fossil Certificates (NFCs), grid constraints and curtailment, and the lack of financial and regulatory transmission frameworks, are slowing Japan's clean energy transition.
• Major Japanese electric utilities, which control about 75% of installed capacity, have shown minimal investment in domestic renewables, prioritizing fossil fuel and nuclear assets instead. Weak enforcement of the 44% non-fossil fuel obligation further reinforces this trend.
• Regional initiatives in Fukushima and Akita provide effective models for accelerating renewable deployment. These approaches can be scaled nationally by reforming transmission regulation and financing, supporting proactive zoning and planning, promoting Power Purchase Agreements (PPAs), and addressing the urban-rural development gap.

We encourage you to read the full report and fact sheets for a deeper understanding of what is needed to unlock Japan's renewable energy potential.

Warm regards,

Paige Nguyen

Latest Releases

Engagement Update

IEEFA Around the Globe

• IEEFA Australia: Methane in the spotlight as Peabody-Anglo deal falls apart (August 20)
• IEEFA South Asia: Rooftop solar's time to shine in Bangladesh (August 18) 
• IEEFA Europe: Examining the credibility of EPH's green bonds (August 18)
• IEEFA U.S.: The overlooked link: Integrating textiles into the discussion of the petrochemical industry (August 07)

Media Highlights

• Bloomberg: Trump's trade war with China threatens these green technologies
• Financial Times: Will a 3-minute battery swap beat a 5-minute charge for China's EV drivers?
• Mongabay: Ocean-based carbon storage ramps up, bringing investment and concern
• The Jakarta Post: Clean energy pledge rings hollow amid coal subsidies
  
• Philippine Daily Inquirer: Surging LNG imports might jack up prices, but renewables promise respite
• Solar Quarter: IEEFA Report: Japan's path to tripling renewable capacity by 2030 hinges on grid reform, market redesign, and stronger utility obligations 

Job Openings

The IEEFA Asia team is expanding, and we are seeking passionate individuals to join us in our mission to accelerate the energy transition in Asia: 

• 2x Indonesia Energy Finance Analysts (based in Indonesia)
• Climate Finance Analyst (based in South Korea, focused on regional climate finance)

If you (or someone you know) is looking for a meaningful career opportunity at the intersection of finance and energy transition, we’d love to hear from you!