Generic Hero BannerGeneric Hero Banner
Latest market news

Japan’s power sector cuts CO2 emissions in 2023-24

  • : Electricity, Emissions
  • 24/10/09

Japanese power suppliers reduced CO2 emissions in the April 2023-March 2024 fiscal year, because of increased use of nuclear and renewable power sources as well as higher thermal generation efficiency.

CO2 emissions by the country's power firms totalled 311mn t in 2023-24, equivalent to 0.421 kg/kWh, based on 738.2TWh of electricity sales which accounted for 91.4pc of the country's total power sales, according to preliminary data released by the electric power council for a low carbon society (ELCS) — a group of 61 Japanese power firms. The 2023-24 emissions were lower by nearly 5pc from 327mn t, or 0.437 kg/kWh, in 2022-23.

The ELCS is aiming to cut CO2 emissions to 0.25 kg/kWh by 2030-31, in line with the government's goal for all the country's power sources in the same fiscal year.

Japan's renewable power output — including hydropower generation — totalled 148TWh in 2023-24, up by 3.1pc from a year earlier, according to the country's trade and industry ministry Meti. Nuclear generation also rose by 50pc to 80TWh during the period. Renewable and nuclear accounted for 18pc and 10pc respectively of the country's total power generation. Thermal output fell by 6.5pc from a year earlier to 594TWh in 2023-24, but still accounted for 72pc in the power mix.

Japan's greenhouse gas (GHG) emissions in 2022-23 fell by 2.5pc from a year earlier to 1.135bn t of CO2, because of higher renewable power output and lower energy consumption, according to the environment ministry. This marked the lowest level in 33 years or since 1990-91, when Japan started recording its emissions data.

Japan's nationally determined contribution (NDC) targets for a 46pc reduction in its GHG emissions by 2030-31 against the 2013-14 levels. Tokyo is set to update and submit its new NDC with an emission reduction goal for 2035 in 2025.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

25/06/24

Netherlands publishes RED III biofuels draft

Netherlands publishes RED III biofuels draft

London, 24 June (Argus) — The Dutch government's updated draft legislation to transpose the EU's revised Renewable Energy Directive (RED III) notably proposes abolishing double-counting renewable energy contributions from Annex IX feedstocks. The draft introduces a greenhouse gas (GHG) emission reduction mandate for land, inland shipping and maritime shipping, but excludes aviation — which was included in a previous draft . The RED III mandate will take effect in 2026. Obligated parties have to fulfil the mandate by surrendering a sufficient amount of so-called emission reduction units (EREs) in each sector. The mandate's flexible credit allowance allows EREs generated in the land sector to be used to partly meet emission reduction obligations in inland and maritime shipping ( see table ), but EREs from inland and maritime shipping cannot be used by land sector suppliers to fulfil their compliance requirements. Fuel suppliers with overall consumption of more than 500,000 l/yr will need to incorporate a 14.4pc share of renewable fuels in their annual deliveries in 2026. This increases linearly, to reach 27.1pc in 2030. The amount of crop-based biofuels in the land sector will be limited to 1.4pc of the overall energy content of total consumption until 2030, and will not be accepted towards targets in maritime and inland shipping and aviation. The amount of Annex IX Part B biofuels — such as used cooking oil (UCO) and animal fats categories 1 and 2 — that can be counted towards the mandate will be limited to 4.29pc in the land sector and 11.07pc in inland shipping. Obligated parties will be unable to claim EREs from Annex IX Part B fuels used in maritime shipping. The draft also introduces a minimum share of emission reductions that have to be achieved by Annex IX Part A and renewable fuels of non-biological origin (RFNBO), for all sectors. RED III mandates that 5.5pc of all fuels supplied must be advanced biofuels, including at least 1pc RFNBOs by 2030. The Netherlands' draft decouples these targets, to reduce investment uncertainty ( see table ). Refineries that use renewable hydrogen in their production process can claim refinery reduction units — or RAREs — which can be used by a supplier to meet an RFNBO sub-target in various sectors. Correction factor delay The ministry will delay its plans to apply a "correction factor" of 0.4 to its "refinery route" stimulus for hydrogen demand, in order to ensure the measure does not undermine direct use of hydrogen in transport. The correction factor means the value of emissions reductions credits generated through the use of renewable hydrogen for transport fuel production would be limited to a certain percentage of those generated through direct use of renewable hydrogen or derivatives in transport. The government leaves the option open to impose a correction factor from 2030. Although the EU Fuel Quality Directive increases the maximum share of bio-based components to 10pc in diesel, the Dutch government said fuel suppliers must continue to offer B7 — diesel with up to 7pc biodiesel — as a protection grade, because of the large number of cars incompatible with B10. Companies will be able to carry forward any excess EREs to the next compliance year. Companies with an annual obligation can carry forward up to 10pc of the total amount of EREs needed to fulfil their obligation in a year, with registering companies allowed to carry forward 4pc. Dutch renewable fuel tickets (HBEs) carried into 2026 will be converted into EREs on 1 April 2026, the government said. By Evelina Lungu and Anna Prokhorova Overview of future Dutch obligations pc CO2 2026 2027 2028 2029 2030 Land (Road) Sector-Specific Obligation 14.4 16.4 22.8 24.8 27.1 Flexible Credit Allowance 0.0 0.0 0.0 0.0 0.0 Total Obligation 14.4 16.4 22.8 24.8 27.1 Annex 9A Sub-Obligation 3.1 4.5 5.9 7.3 8.8 RFNBO Sub-Obligation 0.1 0.1 0.4 0.8 1.1 Conventional Biofuel Limit 1.2 1.2 1.2 1.2 1.2 Annex 9B Limit 4.3 4.3 4.3 4.3 4.3 Maritime Sector-Specific Obligation 3 3 4 5 6 Flexible Credit Allowance 1 2 2 2 3 Total Obligation 4 5 6 7 8 Annex 9A Sub-Obligation - - - - - RFNBO Sub-Obligation 0 0 0 0 0 Conventional Biofuel Limit 0 0 0 0 0 Annex 9B Limit 0 0 0 0 0 Inland Waterways Sector-Specific Obligation 3 4 6 8 12 Flexible Credit Allowance 1 1 2 2 3 Total Obligation 4 5 8 10 15 Annex 9A Sub-Obligation - - - - - RFNBO Sub-Obligation 0 0 0 0 0 Conventional Biofuel Limit 0 0 0 0 0 Annex 9B Limit 11 11 11 11 11 The Ministry of Infrastructure and Water Management *RFNBO: Renewable fuel of non-biological origin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Erex to start Vietnam biomass co-firing tests in August


25/06/24
25/06/24

Erex to start Vietnam biomass co-firing tests in August

Tokyo, 24 June (Argus) — Japanese renewable energy developer Erex plans to start coal and biomass co-firing test runs at thermal power plants in Vietnam from August. Co-firing test runs will start at the 110MW Na Duong plant in August and at the 115MW Cao Ngan plant in September, Erex said on 20 June. Both plants are owned and operated by Vietnam National Coal and Mineral Industries (Vinacomin). The Japanese company announced in April that it was planning co-firing test runs at the two plants , but had not previously disclosed when the tests would start. The trial operations are expected to last for several months and burn locally produced wood chips, starting from 5pc co-firing and gradually increasing to 20pc. The two companies will renovate the plants in 2026-27 after the trial operations and start commercial co-firing operations around 2027-28, Erex said. Erex said it also plans to conduct co-firing test runs at Vinacomin's 670MW Cam Pha plant in 2027-28 and start commercial operations around 2029-30. The company aims to carry out co-firing at six Vinacomin plants with a combined capacity of 1,585MW, including Na Duong, Cao Ngan, and Cam Pha. The co-firing projects are part of Vietnam's net zero strategy. Erex is eyeing carbon credits from the plants once commercial co-firing begins. The company aims to sell some of the carbon credits in Japan and is currently negotiating with Vietnamese government on this. Erex is expanding its renewable energy business in Vietnam and southeast Asia. In addition to co-firing projects, the company aims to operate a total of 19 biomass-fired power plants in Vietnam. The first of these, the 20MW Hau Giang plant, started commercial operations in April. Erex also plans to build up to five biomass-fired power plants in Cambodia. The company projects that profits from Vietnam and Cambodia will account for more than half of its overall earnings by around 2030, from nearly negligible levels in 2024. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ontario weighs domestic biomass-based diesel quota


25/06/23
25/06/23

Ontario weighs domestic biomass-based diesel quota

New York, 23 June (Argus) — Ontario is considering requiring that domestically produced renewable fuels make up 3pc of the province's diesel pool, an effort to help biodiesel producers struggling to adapt to policy changes in the US. Ontario late last week requested input on a proposal to supplement existing provincial biofuel blend requirements with a new mandate for Canadian production, similar to a domestic content rule that took force in British Columbia this year. Ontario already requires that renewables like biodiesel and renewable diesel make up 4pc of diesel consumption each year, but this proposal would require that three-fourths of that mandated volume come from biofuels produced in Canada. The Ontario Ministry of the Environment, Conservation and Parks says the proposal is in response to a new clean fuel tax credit that took effect in the US this year, which can only be claimed by US producers. A US Department of Agriculture report late last year said that there were six remaining operational biodiesel plants in Canada and that the industry has historically sent almost all its fuel into the US, which up until this year treated foreign biodiesel as eligible for a federal tax credit. At the same time, US biofuels have increasingly entered Canada to meet demand from low-carbon fuel standards federally and in British Columbia. In those programs, higher-carbon fuels that exceed annual carbon intensity limits incur deficits that suppliers must offset with credits generated from approved lower-carbon alternatives. The Canadian biofuel industry has pushed officials to respond. British Columbia as a result began requiring this year that renewables make up a minimum 8pc of diesel fuels supplied in the province, up from 4pc, and that this mandated volume must come from Canadian producers starting in April. British Columbia-based renewable diesel producer Tidewater Renewables has also unsuccessfully pushed Canada to impose duties on US product. The Ontario environment ministry said the domestic mandate, if finalized, would be a "temporary, time-limited measure" that would last as long as US subsidies "threaten Ontario's biodiesel industry." The new US tax credit that excludes foreign refiners is currently set to lapse after 2027, but Republican lawmakers have floated using a massive budget bill they want to pass in the coming weeks to extend the incentive through 2031. While full regulatory text is not available, as is typical for this early stage of the Ontario rulemaking process, it appears the proposal would otherwise keep intact the general structure of the province's biofuel mandate. The program offers more credit to lower-carbon fuels, which led to a slightly lower than 4pc biofuel blend rate for the diesel pool in 2023, according to a report from trade group Advanced Biofuels Canada. The domestic content proposal would also not affect a separate mandate that biofuels make up increasing amounts of the gasoline pool through 2030. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK set to boost clean energy investments by £30bn/yr


25/06/23
25/06/23

UK set to boost clean energy investments by £30bn/yr

London, 23 June (Argus) — The UK government plans to increase its clean energy investment by more than £30bn/yr over the next 10 years as part of its broader industrial strategy, it announced today. The new Clean Energy Industries Sector Plan sets out a framework to boost the UK' economy to 2035 by investing in low-carbon technologies. It focuses on key sectors including offshore and onshore wind, nuclear fission and fusion, hydrogen, carbon capture, usage and storage (CCUS) and heat pumps. State-owned entity Great British Energy will invest more than £8.3bn during this parliament, including £1bn for a Clean Energy Supply Chain Fund to support domestic manufacturing. The National Wealth Fund, with £27.8bn in capital, will channel at least £5.8bn into CCUS, hydrogen, ports and green steel projects. And state-owned development bank the British Business Bank will allocate £4bn under its Industrial Strategy Growth Capital package to attract £12bn in private investment for climate technology firms, the government said. The contracts for difference scheme's newly launched "clean industry bonus" has committed £544bn to offshore wind supply chains, potentially leveraging £9bn in private funds, with discussions under way to extend this to hydrogen and onshore wind. The offshore wind sector is projected to contribute £2bn-3bn of gross value added per gigawatt installed and could support 100,000 jobs by 2030, the government said. Nuclear fission initiatives include £300mn for the high-assay low-enriched uranium fuel programme, while the projected 3.2GW Hinkley Point C and 3.2GW Sizewell C nuclear plants aim to pass on 64pc and 70pc, respectively, of the construction value to UK businesses. Fusion energy will receive £2.5bn over five years to advance research, including the Spherical Tokamak for Energy Production prototype by 2040. Hydrogen projects, backed by the hydrogen allocation rounds, are expected to secure £400mn in private investment by 2026, with a regional hydrogen network planned for 2031. CCUS will benefit from £9.4bn to support the East Coast and HyNet clusters, with further funding for the Acorn and Viking clusters under review. And a £13.2bn Warm Homes Plan aims to boost heat pump demand, supported by an investment accelerator competition to expand manufacturing. Starting in 2027, the British Industrial Competitiveness Scheme is intended to reduce electricity costs by up to £40/MWh for more than 7,000 electricity-intensive businesses in manufacturing sectors such as automotive, aerospace and chemicals. Industrials will be exempt from levies used to fund renewables obligation schemes, feed-in tariffs and the capacity market. And the government plans to increase support for about 500 energy-intensive firms such as steel and glass manufacturers by raising their electricity network charge discount from 2026 to 90pc from 60pc. The plan projects significant job growth by 2035, with a forthcoming Clean Energy Workforce Strategy to address skill shortages in engineering and manufacturing, the government said. By Timothy Santonastaso Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Subsidised bio-LNG deemed eligible under FuelEU


25/06/23
25/06/23

Subsidised bio-LNG deemed eligible under FuelEU

London, 23 June (Argus) — Subsidised bio-LNG and other types of alternative fuels are deemed eligible under FuelEU Maritime Regulation, according to sources with knowledge of the matter. FuelEU allows emissions reductions supported under other legal frameworks, such as the support schemes under RED, in order to encourage greater investment in less carbon-intensive marine fuels. Under Directive (EU) 2018/2001 (RED), the greenhouse gas (GHG) reductions are counted towards member states' targets, while under FuelEU the targets are set to shipping companies. Excluding subsidised marine fuels may otherwise lead to competitive disadvantages for smaller sectors, such as European biomethane. The European Commission has not yet issued an official statement. Demand for bio-LNG has risen sharply this year with the start of FuelEU Maritime in January, requiring ship-owners to reduce their GHG emissions by 2pc in 2025, with targets steadily rising to 80pc in 2050. Subsidised, bunker dob bio-LNG in Northwest Europe was last assessed at €78.09/MWh ($89.55/MWh) on Thursday, while its unsubsidised counterpart was assessed at €93.59/MWh. By Madeleine Jenkins Bio-LNG vs Gas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more