Cabinet Decision Made on the FY2023 Annual Report on Energy (Energy White Paper 2024)

Outline of the report

Each year, the Energy White Paper describes the energy trends and the status of measures taken regarding energy supply and demand in the previous fiscal year. In addition to these data, this year's paper introduces data focusing on the following.

Outline of the 2024 report

(1) Progress in Reconstruction of Fukushima

• In August 2023, Japan started discharge of ALPS treated water into the sea. This is a challenge that Japan must never postpone to steadily progress the decommissioning of the Fukushima Daiichi Nuclear Power Station and achieve the reconstruction of Fukushima. Before, during and after the discharge, Japan have conducted monitoring and confirmed that the treated water was discharged safely. The International Atomic Energy Agency (IAEA) has also concluded that the discharge satisfies international safety standards, and an increasing number of countries and regions including the United States and European countries have shown their understanding. In addition, the public and private sectors in Japan have been expanding their nation-wide efforts to increase the consumption of Japanese fishery products.
• Over the time up to November 2023, Japan lifted all evacuation orders imposed on the Specified Reconstruction and Revitalization Base Areas from amongst the Restricted Areas that Japan has designated as locations where residence will be restricted. In addition, in June 2023, Japan established a new system called the “Specified Living Areas for Returners” in which it will promote the effort for lifting evacuation orders over the 2020s so that all residents who wish to return can do so, and it is now advancing the approval of related plans. Following this, it will carry out decontamination and infrastructure development.
• Concerning the Fukushima Innovation Coast Framework, an initiative aiming to create new industries in the Hama-Dori area, Japan has been making progress in efforts as seen in the establishment of the Fukushima Institute for Research, Education and Innovation (F-REI) in April 2023 as a core base that serves as a control tower, coordinating activities of research facilities and other existing organizations located in Fukushima.

(2) Ensuring Energy Security Compatible with Net-Zero GHG Emissions

• Not only Russia's aggression against Ukraine but also the worsening situation in the Middle East have halved the amount of sea traffic in the Red Sea, which is a key maritime traffic route. In addition, the amount of sea traffic through the Panama Canal has also decreased by 40% due to drought and falling water levels. Ensuring energy security is an important issue for Japan from the viewpoint of the entire supply chain.
• Although fuel prices, which soared in 2022, have fallen, the market prices of coal and natural gas are still at two to three times the levels in the late 2010s. The future outlook of fuel prices remains uncertain, partly because of the increase of coal imports by China, a country which produces and consumes more than half of the world's coal.
• Some point out that not only the issue of a decrease in investment in the upstream sector of LNG caused by the advancement of global decarbonization but also the advancement of green transformation (GX) and digital transformation (DX) may increase electricity demand in Japan.
• In Japan, the import value of fossil fuels increased by more than 22 trillion yen over two years due to the combination of fuel price hikes and the depreciation of the yen against the US dollar, resulting in the country's largest ever trade deficit (over 20 trillion yen per year). In order to fundamentally solve the risk of price hikes, it is necessary for Japan to shift to a supply-demand structure that is resilient to energy crises by taking certain measures, including encouraging investment in the fields of energy efficiency improvement and decarbonized energy.

(3) Challenges and Responses to Achieve GX and Net-Zero GHG Emissions

• Japan, which emits 3% of the world's greenhouse gases, has been steadily making progress in efforts towards its target of emission reduction by 46% in FY2030 (from the levels in FY2013).
• The public and private sectors in overseas countries have jointly been accelerating the competition for investment to achieve GX. In response, Japan formulated its own GX Promotion Strategy in July 2023 and compiled a series of Sector-Specific Investment Strategies in December 2023. Japan has made investment promotion measures more specific, including the development of legal frameworks for hydrogen and CCS, and the investment in GX by the public and private sectors in Japan has entered the phase to implement GX.
• The decision document released at COP28 states that Parties will contribute to “tripling renewable energy capacity globally and doubling the global average annual rate of energy efficiency improvements” and it also explicitly mentions the term “nuclear” for the first time as a measure to combat climate change. Furthermore, during COP28, the Declaration to Triple Nuclear Energy was announced by 22 countries including Japan.
• Japan's efforts will lead to GX in Asia, a region that is dependent on fossil fuels and has been growing rapidly. Efforts under the Asia Zero Emission Community (AZEC) are expected to serve as a driving force for the realization of GX in Asia. Japan will contribute to GX in Asia and around the world including by taking advantage of its GX technologies.

Related Materials

• FY2023 Annual Report on Energy (Energy White Paper 2024) (Summary)(PDF:1,643KB)

Related Link

• ANRE website for Annual Report on Energy

Division in Charge

Research and Public Relations Office, Policy Planning and Coordination Division, Commissioner’s Secretariat, Agency for Natural Resources and Energy