The EU-Japan Centre is pleased to start a new weekly service by publishing brief summary of the latest information from the Japanese governmental organizations & private companies/organizations. A couple of minutes reading to be informed about what is happening in Japan's policy, economy, EU-Japan relations, and innovation.

*Information is deemed correct at the time of release. 

JAPANESE INDUSTRY AND POLICY NEWS

METI proposes support measures for hydrogen and ammonia supply chain development
On December 13, the Ministry of Economy, Trade and Industry (METI) held a subcommittee meeting of the Advisory Committee for Natural Resources and Energy (an advisory body to the Minister of METI), and proposed an outline of support measures for the spread of hydrogen and ammonia. This will subsidize suppliers for a long period of 15 years, in principle, and cover the difference in selling prices of existing fossil fuels. Hydrogen and ammonia, which Japan aims to build a supply system for by around 2030, are expected to be used in place of liquefied natural gas (LNG) and coal, but their prices are currently several times higher. Since it will not spread as it is, the government will support suppliers to keep the selling price down to the same level as LNG and coal. Specifically, METI will determine the price that can recover the supply cost of hydrogen and ammonia, and the subsidy amount will be determined based on the difference between the price of coal and LNG. The subsidy amount will be reviewed at regular intervals. 

Recorded video (YouTube in Japanese) of METI subcommittee meeting of the Advisory Committee for Natural Resources and Energy: https://www.youtube.com/watch?v=ogl6hh3TV9o

METI to start full-scale operation of emissions trading in FY 2026 and introduce CO2 levy in FY 2028
On December 14, the Ministry of Economy, Trade and Industry (METI) presented concrete measures (drafts) such as the introduction timing and system design for carbon pricing (CP), which requires companies to bear the cost according to their CO2 emissions, in the Green Transformation Promotion Subcommittee in the Industrial Structure Council. The "emissions trading system," which sets a limit on the amount of CO2 emitted by high-emission industries and trades the amount of emission reduction, will be put into full operation from around FY2026. In addition, from around FY2028, a system will be introduced in which fossil fuel importers, etc. pay a levy according to the amount of CO2 emitted by each fossil fuel. The levy will be introduced with a low burden at first and then gradually increased. Furthermore, in terms of emissions trading, starting around FY2033, It will gradually introduce a “paid auction,” similar to the one in the EU, for power generation companies.

Recorded video (in Japanese) of Green Transformation Promotion Subcommittee in the Industrial Structure Council of METI: https://www.youtube.com/watch?v=qIhp74PiXSQ

Euglena, PETRONAS, ENI Joint study on biofuel production plant construction and operation project in Malaysia 
Euglena Co., Ltd., Malaysia’s Petroliam Nasional Berhad (hereinafter “PETRONAS”), Italy’s Eni SpA (hereinafter “Eni”) (Together, the three companies, hereinafter referred to as the "Three Partners"), are jointly considering a project (hereinafter referred to as the "Project") to construct and operate a biofuel production plant (hereinafter referred to as the "Commercial Plant") in Malaysia. We will let you know. The commercial plant is scheduled to be constructed within the Pengerang Integrated Complex (PIC), one of Southeast Asia's largest refinery and petrochemical complexes, located in the state of Johor, Malaysia.
The three partners are currently jointly conducting a technical and economic feasibility assessment for the realization of this project. A final investment decision is expected to be made. The commercial plant is scheduled to be built adjacent to PETRONAS' existing refinery and petrochemical facilities, making it possible to utilize PIC's value chain, utility equipment and facilities. In addition, PIC's location with easy access to major international shipping routes will enable it to meet the growing global demand for biofuels.

Euglena website: https://www.euglena.jp/en/news/20221214-2/

Japan, Britain and Italy jointly develop next-generation fighter
Japan, the United Kingdom, and Italy announced on Dec. 9 that they would jointly develop a next-generation fighter. They plan to develop one type of fighter that will be the successor to both the Air Self-Defense Force's F2 fighter and the British and Italian "Eurofighter Typhoon", and to start deploying it in 2035. It will be a fighter with performance exceeding the "fifth generation" such as the latest stealth fighter F35, and also aims to export to the three countries. This is the first time that Japan has jointly developed defense equipment with a country other than the United States. With regard to the development of the next-generation fighter, Japan and the United Kingdom agreed in May this year to come up with an overall picture of cooperation by the end of the year.

Ministry of defense website: https://www.mod.go.jp/en/article/2022/12/9f3717bac3e9bca986f2e80ba73f7822065a9f2b.html

Successful launch of ispace lunar lander
The lunar lander of ispace, a Japanese space development startup, was launched from Florida, USA on December 11 by the US SpaceX rocket "Falcon 9". After confirming its stable operation in space and adjusting its trajectory to head for the moon, it is expected that it will attempt to land on the moon around the end of April 2023. A successful landing would be the world's first private mission. Private companies that fly artificial satellites are appearing one after another, but there is still no successful example of transport aircraft to the moon. ispace regards the flight of the lander as a demonstration test, and will use it as a foothold for building a transportation service to the lunar surface in the future.

ispace website: https://ispace-inc.com/news-en/?p=4128

Advisory panel recommends expansion of ODA
Minister of Foreign Affairs (MOFA) announced Dec. 9 that the panel of experts for the Minister of MOFA had put together recommendations for reviewing the "Outline," which sets out guidelines for next year's ODA (Official Development Assistance). In addition to emphasizing cooperation in strengthening economic security, it should clarify the path to achieving the goal by doubling the budget scale. Next year, the government plans to revise the "Outline," which sets out the principles and guidelines for ODA, for the first time in eight years in light of changes in the international situation. In the proposal, as the direction of ODA for the next ten years or so, emphasis should be placed on cooperating with developing countries not only in climate change countermeasures but also in strengthening economic security, including the strengthening of supply chains. In addition, it is recommended that a concrete path toward achieving the goal should be shown, such as doubling the budget scale, which was 0.34% of GNI = gross national income as of last year, to 0.7% in the next 10 years.

MOFA website (in Japanese): https://www.mofa.go.jp/mofaj/press/release/press1_001202.html

Tokyu Land Corporation conducts Japan's first technical demonstration of "Ocean Floating Solar Power Generation"
On December 8, Tokyu Land Corporation announced that proposal of Japan's first "offshore floating solar power generation system" and "Self-sailing Boat” with technology to transport electricity by sea was adopted as "Tokyo Bay eSG Project" by the Tokyo Met. Government aiming for social implementation of advanced technology in the Tokyo Bay area.The project will be implemented in collaboration with Solarduck (Netherlands), which is engaged in the offshore floating solar power generation business, and Everblue Technologies, which is working to realize an autonomous yacht using renewable energy. Tokyo, the largest consumer of electricity, but it depends on power transmission from the suburbs. This project aims to realize a city model by achieving energy generation and marine transportation in the Tokyo Bay Area.

Solarduck website: https://solarduck.tech/solarduck-will-build-japans-first-offshore-floating-solar-demonstrator-in-tokyo-bay/

ANA's CO2 emission reduction target receives SBT certification, first among Asian airlines
ANA Holdings (ANA HD) announced on December 9 that the company's greenhouse gas (CO2) emission reduction target was certified as a necessary science－based target (SBT) to achieve the targets of the Paris Agreement by the "Science Based Targets Initiative (SBTi)". According to ANA HD, it is the first Asian airline to receive SBT certification. ANA Goup has established targets to reduce carbon intensity by 29 percent* in FY2030, compared to the FY2019 levels. The SBT initiative (Science Based Targets initiative) is an international initiative founded by CDP, World Resources Institute (WRI), World Wildlife Fund (WWF), and United Nations Global Compact (UNGC) that promote information disclosure on climate change countermeasures. 

ANA Holdings website: https://www.anahd.co.jp/group/en/pr/202212/20221209.html?_gl=1*l3e2l9*_ga*OTkzNjkyMTMzLjE2NzA5MDk1MDE.*_ga_32F297W9WL*MTY3MDkwOTU3OC4xLjEuMTY3MDkwOTYwOC4wLjAuMA

Visualization of supply chain CO2 emissions, 35 companies implement data exchange
The Japan Electronics and Information Technology Industries Association (JEITA) announced on December 9 that it has started a demonstration experiment in which 35 companies participate and exchange data between companies, with the aim of creating rules for "visualizing" CO2 emissions throughout the entire supply chain. This initiative is carried out by the Green x Digital Consortium, whose secretariat is JEITA, with a total of 35 companies including solution providers participating. It conducts technical verification of data linkage between solutions based on international frameworks and practical verification of supply chain CO2 calculation. The demonstration experiment will be conducted by two phases. In phase 1, they will conduct technical verification of data linkage, and in phase 2, conduct practical verification including CO2 calculation with user companies. Through this demonstration experiment, the consortium will create use cases for data linkage between companies and deepen industry collaboration and public-private cooperation for future social implementation.

JEITA website: https://www.jeita.or.jp/english/press/2022/1209.pdf

Japan Airlines joined the partnership of "Oita Prefecture x Sierra Space x Kanematsu" considering Dream Chaser®
Japan Airlines (JAL) announced Dec. 12 that it has joined the existing partnership of “Oita Prefecture x Sierra Space x Kanematsu” to consider Dream Chaser® utilization at Spaceport Oita. Sierra Space is attempting to utilize the airport as an Asian base for the space shuttle "Dream Chaser" under development. JAL will utilize its knowledge in air transportation to cooperate in business development in Japan and operational support at the airport. Kanematsu, Sierra Space, and Oita Prefecture formed a partnership in February, aiming to utilize the airport as Asia's first "horizontal spaceport," in which rockets are loaded onto aircraft and launched horizontally in the air. The prefecture will also promote a satellite launch business using the same type of aircraft as Virgin Orbit in the United States.

JAL website: https://press.jal.co.jp/en/release/202212/007108.html

Sumitomo Forestry participates in formulation of roadmap for maintaining and expanding sustainable forests
Sumitomo Forestry announced on December 9 that it will participate in the formulation of the "Forest Sector Nature-Positive Roadmap," a roadmap for nature positive in the forest sector. This initiative is led by the World Business Council for Sustainable Development (WBCSD) (Geneva, Switzerland), a coalition of companies aiming for sustainable development, and Sumitomo is the only Japanese company to participate. The roadmap sets 2020 as the base year and aims to achieve a state (net positive) by 2030 in which no ecosystems are lost and are increasing. To this end, it calls on companies in the forest sector to build a recycling-oriented business model that maximizes the collection and recycling of materials and products while maintaining and expanding sustainable forests.

SUMITOMO FORESTRY Website:https://sfc.jp/english/news/pdf/20221209_01.pdf