RE100 members are accelerating the energy transition in Japan

RE100 members report significant barriers to procuring renewable electricity in Japan such as high costs, limited supply, and procurement challenges. Renewables make up just 22% of the country’s electricity generation, the lowest share among G7 countries, with Japan spending 3% of its GDP on fossil fuel imports between 2010 and 2022. 

Yet at COP28, Japan committed to tripling global renewable capacity by 2030, and our 88 Japanese headquartered members continue to demand better access to renewables, sending an important demand signal to policymakers. As international markets increasingly demand more sustainable supply chains, policymakers in Japan must follow the ambition of RE100’s Japanese members, recognise the opportunity of renewables, and meet the country’s international climate commitments or risk Japan’s energy security and global competitiveness.

Increasing ambition of our Japanese members 

RE100 is a leadership campaign, and ambitious public targets show climate leadership and strengthen the corporate demand signal for renewable electricity. In 2023, as a result of outreach from Climate Group’s CEO to Japanese RE100 members, several members increased their ambition. 

As we prepare to launch our policy messages for Japan, we spoke to several Japanese based members that recently increased their ambition by bringing forward their RE100 target dates, to better understand their aspirations and procurement journeys. In Japan, 13 members have so far increased their ambition, driving up their corporate demand signal to policymakers and adding their voice to the growing call for renewable electricity in Japan.

For example, Nomura Research Institute joined RE100 in 2019 with an initial target date of 2050. In 2023, it took the impressive step of bringing this forward by 20 years to 2030. In 2023, Rakuten, which also joined in 2019, brought forward its target date, from 2025 to 2023, sending a clear signal to policymakers about the required urgency of the renewable transition and what is possible in the Japanese market – we look forward to seeing their progress towards this target in next year’s annual report.

“Aligning our RE100 goal with our 2023 carbon neutrality goal for all Group business operations has helped us navigate the necessary changes to our operations, driving steady progress towards our new sustainability goals.” 

NEC Corporation, Nikon and Ricoh also brought their target years forward by a combined total of 40 years.  

“The trigger was a letter from the CEO of Climate Group to the CEO of Ricoh entitled ‘Increasing Ambition’. We discussed it internally and decided to bring forward the original 2050 targets by 10 years. Ricoh's commitment … is not just about accelerating our own sustainability journey. I am excited that it will also enhance Ricoh's support to our customers in reducing their carbon footprint and emission levels.” 

Member progress towards 100% renewable electricity

Japanese headquartered RE100 members are working tirelessly to overcome obstacles to corporate renewable electricity procurement, and they’re making substantial strides towards their RE100 targets. A number of smaller members are making significant progress in this challenging market, setting an example to other locally headquartered businesses, as well as policymakers, about what is possible in Japan. 

For example, Dai-Ichi Life committed to a 2023 RE100 target date and is now using 100% renewable electricity, according to the latest RE100 Annual Disclosure Report. It has implemented a Power Purchase Agreement (PPA) to meet its renewables needs, and make good on its commitment. 

“Recognising the critical role of renewable resources, we've intensified conservation efforts and harnessed them effectively. As a pioneering step, we became the first Japanese financial institution to initiate an offsite corporate Power Purchase Agreement.” 

Tokyu Land Corporation is currently procuring 99.8% renewable electricity, according to our latest report, the other 0.2% of electricity is being met by sources beyond the RE100 technical criteria. Despite joining with a 2050 target date, Tokyu Land Corporation recently brought forward its target to 2025 and is currently deploying self-generated renewable electricity to meet 98% of its electricity needs. 

“Since 2014, we have developed renewable power plants across Japan with a capacity of around 1.7GW … They allow us to achieve the target using the self-generated renewable electricity.”

Accelerating Japan’s energy transition

There is, however, much work still to be done in Japan’s transition to renewable electricity. We invite more Japanese RE100 members to increase their ambition in support of our messages to policymakers, breaking down the barriers to corporate sourcing of renewables. Despite some members already making good on their commitment, overall our members currently meet 25% of their electricity needs with renewables in Japan, far lower than the global average of 50%.

By falling behind on the global energy transition, Japan is endangering its energy security, investment opportunities and its position in the global economy. Japanese policymakers must rapidly create the right environment for investments in Japan’s renewable electricity capacity, enabling RE100 members and Japan to meet their climate commitments – such as the commitment to triple renewables globally, signed at COP28. 

“Renewable energy provides a big economic opportunity for Japan. By taking action to drive up Japan’s renewables capacity, policymakers will safeguard the country’s energy security and economic standing. Japan needs to now match the climate ambition being shown by our members and enact policies that get more renewables projects off the ground, speed up connection times for new renewables, and enable renewable electricity to be purchased at fair market price.”

Is your company interested in joining RE100 or increasing its ambition? Get in touch with us here.