Press Conference by Minister Muto (Excerpt)

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

11:09 to 11:21 a.m.
Friday, November 22, 2024
Press Conference Room, METI Main Building

Opening Remarks

Final disposal of high-level radioactive waste

To begin, I would like to mention two points.
The first point is the literature survey concerning the final disposal of high-level radioactive waste. Today, a report on the literature survey regarding Suttu Town and Kamoenai Village, Hokkaido Prefecture, was published by the Nuclear Waste Management Organization of Japan.
The report will also be delivered to the governor of Hokkaido and the mayors of the two municipalities. The statutory process for public viewing of the report will also start.
I would like to express my heartfelt appreciation to the two municipalities that have accepted the survey.
Going forward, we will carefully provide information on the content of the report and the status of discussion in Hokkaido by holding explanatory meetings in and outside Hokkaido and by conducting public relations activities across the nation.
The government will exercise leadership in carefully addressing the concerns of local residents and Japanese people so that in-depth discussions can be held nationwide.

FY2023 energy supply and demand report (preliminary report)

Let us move on to the second point. At this time, we have come up with preliminary data on the energy supply and demand in FY2023.
The main point is that, as a result of an increase in renewable energy and the restart of nuclear power stations, the ratio of decarbonized power sources rose to 31.4%, the highest level since the Great East Japan Earthquake. The self-sufficiency rates of energy rose to 15.2%, also the highest level since the Great East Japan Earthquake. The volume of energy-related CO2 emissions decreased to 920 million tons, updating the previous record low from FY2013.
Taking those results into consideration, we will continue to promote activities to realize a stable energy supply, economic growth, and decarbonization at the same time. As for detailed statistical data, please ask the administrative staff.

Question-and-Answer Session

Support for next-generation semiconductors

Q: A media report mentioned proposals for governmental investment in and preferential tax system measures for Rapidus. In view of the circumstances of past support for the semiconductor industry, voices of concern have been raised over governmental involvement in the management of the company. Regarding the additional preferential measures for particular companies, opinion is likely to be divided as to whether or not they are appropriate. Please tell me whether the report is factual and what the necessity and significance of strengthening governmental involvement is.

A: It is a fact that in preparing for the mass production of next-generation semiconductors we are considering increasing the use of investments and loans and taking necessary tax system measures, including for Rapidus. On the other hand, the government is still considering the details, and it is not a fact that the government has decided to invest in Rapidus as stated in the media report.
As you mentioned just now, one of the factors behind the steep decline in the market share of the Japanese semiconductor industry was that, while foreign governments have provided large-scale support for capital investment, in Japan, the government has hesitated to provide proactive investment support and semiconductor manufacturers were unable to make bold investments, according to analysis results.
Regarding the current semiconductor policy, while reflecting on past mistakes and the lessons learned, we are considering providing large-scale financial support promptly. Following this policy change, I understand that several large-scale domestic investment projects, such as the construction of a new factory by TSMC, are being realized.
Next-generation semiconductors are a key technology that is critical to the competitiveness of the entire Japanese industry and requires a huge investment, and this is an area in which countries around the world are competing. It is essential for the government to continue providing support in advance and to pave the way for an environment to encourage private companies to make bold investments.

U.S. financial sanctions against Russia

Q: The U.S. Department of Treasury announced that it will add several financial institutions, including Gazprombank, to the scope of its sanctions. I have two questions.
At this point in time, what kind of impact do you expect this to have on Japan?
The other question is, while Japanese imports of LNG will remain outside the scope of the sanctions until June 28, what are your expectations for the situation thereafter and your thoughts on the actions to be taken?

A: I am aware of the sanctions against Russian banks, including Gazprombank, that have been recently announced by the United States.
According to the U.S. announcement, the Sakhalin 2 project and transactions regarding Sakhalin Energy LLC conducted through Gazprombank will be exempted from the application of the sanctions. Therefore, my understanding is that there will be no impact on the Sakhalin 2 project.
The Sakhalin 2 project is important for Japan’s energy security, so we will continue to make thorough efforts to ensure that a stable supply to Japan is not disrupted.
We have obtained the understanding of the United States and other G7 countries on Japan’s position that the Sakhalin 2 project is important for Japan’s energy security, as we have carefully been explaining to them.
As for the cutoff date of June 28, the most important thing to do is to ensure that a stable supply to Japan is not disrupted while continuing to provide careful explanations.