Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Japan Association of Corporate Executives (Keizai Doyukai) actively engaged with climate change policy with overall positive positions. It has supported Japan’s 2030 and 2050 GHG emissions reduction targets as well as an increase in renewable and nuclear energy capacity under upcoming 7th Strategic Energy Plan, while supporting the carbon tax with major exceptions. It has also supported renewable and nuclear energy in Japan’s energy mix, while appearing to support a continued role of natural gas.
Top-line Messaging on Climate Policy: Keizai Doyukai is generally supportive of climate action in its top-line messaging. In a December 2023 policy proposal, Keizai Doyukai supported GHG emissions reductions in line with 1.5°C target. In another policy proposal published in March 2023, it supported carbon neutrality by 2050. Keizai Doyukai has some supportive positions on the need for climate policy. In a June 2023 hearing of the Economic and Industrial Policy Innovation Subcommittee at the Ministry of Economy, Trade and Industry (METI), its then-vice chairman, Mitsue Kurihara, appeared to support the Green Transformation (GX) growth-oriented carbon pricing scheme. In a policy proposal, in March 2023, Keizai Doyukai advocated for policymakers to increase the ambition of government regulation on climate change to achieve carbon neutrality through GX.
Engagement with Climate-Related Regulations: Keizai Doyukai has supported Japan’s 2030 GHG emissions reduction target, energy efficiency standards, and renewable energy targets. Regarding GHG emissions targets, Keizai Doyukai supported the need for policies to achieve Japan’s 2030 and 2050 targets in its policy proposals in March 2023. Keizai Doyukai has also consistently advocated for the increased ambition of renewable energy targets and legislation. In its March 2023 policy proposal and August 2024 policy proposal on the 7th Strategic Energy Plan, Keizai Doyukai supported increased measures to maintain and develop renewable energy sources and achieve a high renewable energy ratio.
Keizai Doyukai appears to support the carbon tax with major exceptions. In its policy proposals in January 2023 on carbon pricing, it advocated for a “carbon consumption tax” with conditions that consumers bear the burden. In its March 2023 policy proposal, Keizai Doyukai appeared to support a carbon consumption tax over upstream taxation, emphasizing concerns that the latter hinder the global competitiveness of “key industries.”
Positioning on Energy Transition: Keizai Doyukai has mixed positions on transitioning the energy mix, supporting increased renewable and nuclear energy in the Japanese power composition while appearing ambiguous on a full phaseout of thermal power. In press conferences in June 2024, Keizai Doyukai Chairman Niinami supported urgent and effective decarbonization that includes an increase in renewable and nuclear energy under the 7th Strategic Energy Plan. In a December 2023 policy proposal on nuclear power, Keizai Doyukai supported long-term contributions from nuclear energy to support a shift towards renewables and also supported CCS as a short-term measure to decarbonize the industrial sector (e.g., refining), while mentioning the need to reduce fossil fuels in the energy mix. However, in an April 2024 press conference, Chairman Niinami supported the continued role of natural gas, without stating the need for CCS or methane emission reductions.
Regarding transport and heavy industries, Keizai Doyukai generally promoted a transition to hydrogen, ammonia, biofuels, and e-fuel in transportation and heavy industry, with ambiguity on the need to decarbonize their production, in its policy proposal published in March 2023.
InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q4 2024.