Japan has released a green growth strategy which aims to replace new gasoline-powered vehicles with electric vehicles by mid-2030s. Through this strategy, Japan aims to achieve increased renewable energy deployment and carbon neutrality by 2050. The strategy identified 14 industries, such as offshore wind, hydrogen and fuel ammonia as well as autos and rechargeable batteries with roadmaps for each sector.
The strategy aims to reduce cost of batteries by about 50 per cent to 10,000 yen ($96) or less per kilowatt hour by 2030. Japan also plans to switch fuels for sea-going vessels to cleaner ones such as hydrogen and ammonia by 2050. Although Japan plans to shift to electric vehicles, a prevailing challenge is that at present the average electric vehicle costs about $10,000 more than its more polluting counterpart.
The country also plans to scale up its renewable energy development. Japan has a reference goal of renewable energy sources accounting for 50 per cent to 60 per cent of the country’s power supply by 2050, up from 18 per cent in the financial year ended March 2020.
Japan’s electricity demand is expected to grow in the range of 30-50 per cent by 2050, largely due to the spread of electrified autos. As per the proposal, the country aims to maximize the introduction of renewable energy. Renewable energy sources and cheaper electric vehicles will play crucial roles in Japan’s plan to achieve carbon neutrality by 2050.