Press Conference by Minister Saito (Excerpt)

*Note: This is a provisional translation for reference purposes only.

10:35 to 10:47 a.m.
Friday, May 17, 2024
Press Conference Room, METI Main Building

Opening Remarks

Visit to Hokkaido

Good morning. To begin, I would like to mention one point.

On May 19, the day after tomorrow, I will visit Hokkaido to observe the Rapidus Corporation construction site. The 2-nanometer next-generation semiconductors that the company has been developing are indispensable for realizing digitization and decarbonization in a wide variety of industries, including autonomous driving and generative AI, and they are also a key technology that will determine the future economic growth of Japanese industry. Moreover, the semiconductors are important strategic goods from the viewpoint of economic security. Going forward, semiconductors are also considered critical for Japan in capturing the globally increasing demand.

We also expect that the Rapidus project will bring about a wide variety of ripple effects, including investments and employment involving related industries, as in the cases of TSMC and JASM in Kumamoto.

We have decided to provide a total of up to 920 billion yen in support to the project on the basis of the strict examination of the status of development conducted by outside experts. On the day of my visit, I will confirm the current state of the pilot line under construction and exchange opinions with the staff, including the workers at the site, on the progress made in the development and future prospects.
I will end my remarks here.

Question-and-Answer Session

Strategic Energy Plan

Q: The Advisory Committee for Natural Resources and Energy has started discussions on the revision of the Strategic Energy Plan to prepare the seventh edition. It has announced that interviews with experts are to be conducted on individual issues. At the Strategic Policy Committee meeting, some members pointed out, as to a desirable approach to advancing discussions, that it would be desirable to hear opinions from a wide range of individuals from different generations, including young people. What do you think is a desirable approach to advancing future discussions?

A: In formulating the next Strategic Energy Plan, we would like to consider measures while receiving opinions from people in a variety of positions, including young people.
For this purpose, in formulating the Strategic Energy Plan, METI will not only hold discussions by the members of the Committee but also advance some efforts, including calling for public comments to take into account the opinions of a variety of people, conducting interviews with associations in a variety of areas in the discussion process of the Committee, and establishing an opinion submission section on the METI website to receive a wide range of opinions at any time in parallel with advancing discussions at the Committee.

In addition, we would like to ensure the transparency of the Committee’s discussions by publicizing all materials and minutes of the Committee and uploading each Committee’s meeting to YouTube on the day of the meeting to ensure that it is easily accessible.
Moreover, we would like to regularly distribute articles explaining a variety of themes concerning the difficult energy situation faced by Japan on our website and also distribute video clips to enhance the public understanding of energy issues. Through these efforts, METI will endeavor to convey easy-to-understand information to the public on the energy situation surrounding Japan.
By using various means as I mentioned, METI hopes to reflect the opinions of people in various areas, including young people, in its policies.

Strategic Energy Plan

Q: Regarding the question that was raised just now, at the kick-off meeting involving the Strategic Energy Plan, you showed an awareness of the problem in that Japan is now confronting the most severe situation in its energy policy in the postwar period. Looking back on its postwar energy situation, I understand that triggered by the 1970s energy crisis, Japan established the Agency for Natural Resources and Energy, and since then, it has been working on stable energy supply and other energy policies.

The most severe situation can be understood as a situation worse than the energy crisis. Could you once again explain your understanding of the severity of the situation Japan now faces?

A: I joined the then-Ministry of International Trade and Industry as a university graduate and my first assignment destination was the Policy Planning and Coordination Division of the Agency for Natural Resources and Energy. For 40 years or so since then, I have faced and confronted many issues involving energy policies, both directly and indirectly.

Concerning the energy crisis you mentioned, I think that Japan now has a severe issue that is different from those during the crisis in terms of quality. At the meeting of the Committee on May 15, I expressed my opinion with a strong sense of urgency that Japan is confronting the most severe situation in the postwar period. This is because, first, Japan has not yet depicted a concrete approach to achieving carbon neutrality by 2050. Under this circumstance, I think that it is somewhat difficult to forecast the extent to which the demand for electricity will grow despite the expectation that the demand may greatly increase in Japan.

In addition, as various technological developments are advancing simultaneously, we are confronting a situation in which it is not easy to estimate the progress of the developments. Meanwhile, Japan needs to launch energy policies with a long lead time despite poor visibility, and under the condition that Japan's inability to secure a stable supply of carbon-free power sources would affect its international competitiveness. From this standpoint, I have made statements to the effect that Japan may be facing difficulties that are unprecedented in its history.

We would like to work on the formulation of the next Strategic Energy Plan with this strong sense of urgency.

Strategic Energy Plan

Q: I, too, would like to ask you about the Strategic Energy Plan. At the recent meeting of the GX (Green Transformation) Implementation Council, Prime Minister Kishida said that there is a limitation to the method of presenting the numerical figures in the Energy Mix only based on a single predetermined assumption. Concerning the next Strategic Energy Plan, on which discussions have started, could you explain the future approaches along which you will advance discussions on the Energy Mix?

In addition, you have just mentioned a strong sense of urgency due to conditions that Japan might have never experienced before. In advancing the discussions, am I correct in understanding that Japan’s energy policy is still based on the premise of the S + 3E principle? Please explain your view.

A: I recognize that at the 11th meeting of the GX Implementation Council held on May 13, Prime Minister Kishida said that there is a limitation to the method of presenting the numerical figures in the Energy Mix only based on a single predetermined assumption. From my understanding, the Prime Minister believes that Japan should formulate the Energy Mix not just based on a single assumption, as Japan faces increasing uncertainty about future energy demand and technological innovation, as I mentioned earlier.

Regarding ideal approaches to the new Energy Mix, the Committee will hold discussions on the specifics, and I can say that the best way of coming to appropriate conclusion is nothing more than having the Committees discuss the Energy Mix in depth.

In addition, as the S + 3E principle is the core of our energy policy, I do not believe that this principle will change. At the meeting of the Committee held on May 15, some members pointed out that the principle should basically be maintained in the next plan as well. Accordingly, we would like to advance discussions toward the revision of the plan to prepare the next one under this principle.