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Japan remains focused on restarting nuclear reactors

  • Market: Coal, Electricity, Emissions, Natural gas
  • 25/10/21

Japan will continue to focus on restarting nuclear reactors instead of building new reactors. This may complicate the country's target to realise carbon neutrality by 2050, as it will have little nuclear output by then without new construction.

Japanese premier Fumio Kishida and cabinet ministers on 22 October endorsed a basic energy policy that did not lay out any plans for construction or replacement of nuclear reactors and only focused on the restart of safe reactors. The government did not modify prospects for the nuclear sector from the draft plan that was made in July, despite requests from industry groups such as power and steel to allow new building and replacement, to ensure energy security and reduction of greenhouse gas (GHG) emissions.

Japan typically reviews the country's basic energy policy every three years. The trade and industry ministry (Meti) started discussion on the latest revisions in October last year, forming a key part of efforts to update its April 2030-March 2031 goal to reduce GHG emissions by 46pc from 2013-14 levels and to achieve carbon neutrality by 2050. The cabinet adopted the policy in time for the COP 26 climate change conference that takes place in Glasgow on 31 October-12 November.

Under the latest energy policy, Japan plans to generate 20-22pc of power output from nuclear energy, with 36-38pc from renewables, 41pc thermal power and 1pc from hydrogen and ammonia in 2030-31, which were also unchanged from the draft plans.

The Federation of Electric Power Companies of Japan, a group of major power utilities, expressed regret over the latest energy policy that does not mention new building and replacement of reactors. But it also said the new policy is meaningful, as it still includes a description to continue using necessary nuclear capacity.

Kishida, who named a new cabinet on 4 October, has adopted a positive stance towards the nuclear industry, favouring restarting safe reactors and considering replacing ageing ones. But Kishida also had said the cabinet would review public comments before approving the draft policy.

The government has well reviewed public hearings that was carried out from 3 September-4 October, which included both positive and negative opinions against nuclear energy, an official at Meti said. The current priority is to earn public understanding by restarting safe reactors, the official added.

But Japan will phase out nuclear reactors without any capacity additions. Under the current nuclear safety rules, all reactors are allowed to operate for 40 years with a one-time option to extend their lifespan to 60 years. This suggests that 15 of the existing 33 reactors with a combined capacity of 14,057MW will close by December 2030 and there will be no operational reactors in 2050, assuming a 40-year lifespan.

The future of the nuclear industry also depends on which political party will take majority seats in the 31 October lower house parliamentary election, as most parties have pledged a no-nuclear society. The current ruling liberal democratic party of Japan promotes the restart of safe reactors, without directly prohibiting building reactors. But the second largest the constitutional democratic party has pledged not to allow any new building of reactors in its manifesto.


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10/04/25

Norway plans to cut GHGs, but remain oil, gas producer

Norway plans to cut GHGs, but remain oil, gas producer

London, 10 April (Argus) — Norway's government has proposed a greenhouse gas (GHG) emissions reduction of a minimum 70-75pc by 2035, from a 1990 baseline, but has also committed to the country remaining "a stable and predictable supplier of oil and gas produced with low emissions". The government today set out plans for a 2035 GHG reduction target, as well as a wider climate plan for the country. The 2035 GHG reduction targets build on Norway's 2030 goal of "at least" a 55pc reduction in GHGs, again from 1990 levels. Norway has a legislated goal of "a low-emission society" by 2050 — GHG reductions of 90-95pc from the 1990 baseline. Norway's government underlined its commitment to Paris climate agreement goals and phasing out the use of fossil fuels "towards 2050", but also said that it would "not prepare a strategy for the end phase of Norwegian oil and gas". "The government's plan is about phasing out emissions, not industries", it said, noting that Norway is "a significant contributor to Europe's energy security". Norway is the largest producer and only net exporter of oil and gas in Europe. "The government will further develop the petroleum industry and facilitate the future provision of fields… production will continue to be efficient and with low emissions," the government said. It aims for the country's oil and gas sector — the country's highest-emitting industry — to bring emissions from production to net zero in 2050. The bulk of oil and gas emissions are from downstream use — known as scope 3. Norway plans to achieve the majority of its proposed 70-75pc GHG cuts through national measures, including reduced fossil fuel use and both technical and nature-based carbon removals. It also plans to purchase emissions reductions from outside the EU and European Economic Area. This refers to internationally transferred mitigation outcomes (ITMOs) — emission credits — under Article 6 of the Paris climate agreement. Norway's parliament will consider the proposals. Once legislated in the country's climate act, Norway plans to communicate its updated plans to the UN. Signatories to the Paris climate agreement are expected to submit updated climate plans — known as nationally determined contributions (NDCs) — to UN climate body the UNFCCC every five years. The deadline for NDCs setting out climate goals up to 2035 was in February, but many countries have yet to submit plans . By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US inflation eased for 2nd month in March


10/04/25
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10/04/25

US inflation eased for 2nd month in March

Houston, 10 April (Argus) — US inflation slowed more than forecast in March, pulled lower by falling gasoline prices and slowing shelter inflation, as the new US administration's tariff policies have prompted concerns of a global economic slowdown. The consumer price index (CPI) slowed to an annual rate of 2.4pc in March, down from 2.8pc in February and the lowest rate since November 2024, the Labor Department reported Thursday. Analysts surveyed by Trading Economics had forecast a 2.6pc rate for March. Core inflation, which strips out volatile food and energy, rose at a 2.8pc annual rate, down from a 3pc annual rate the prior month and the lowest since March 2021. The deceleration in inflation came a month after President Donald Trump began to levy tariffs on imports from China and on steel, aluminum and automobiles, starting in February. Several tariff deadlines were pushed back, including a three-month pause enacted this week on much steeper tariffs for most countries. The tariffs have prompted companies and consumers to pull back on investments and some purchases while shaking up financial markets, and heightening concerns of a global recession. The energy index fell by an annual 3.3pc in March following a 0.2pc annual decline in February. Gasoline fell by 9.8pc after a 3.1pc decline. Piped natural gas rose by 9.4pc. Food rose by an annual 3pc, accelerating from 2.6pc. Eggs surged by an annual 60.4pc, as avian flu has slashed supply. Shelter rose by an annual 4pc in March, slowing from 4.2pc in February and the smallest increase since November 2021. Services less energy services rose by 3.7pc, slowing from 4.1pc in February. New vehicles were unchanged after an annual 0.3pc drop in February. Transportation services, which includes what maintenance and repair, insurance and airfares, rose by an annual 3.1pc, slowing from 6pc in February. Car insurance was up by an annual 7.5pc and airline fares fell by 5.2pc. CPI fell by 0.1pc in March after a monthly 0.2pc gain in February. Core inflation rose by 0.1pc for the month. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Trump coal plant bailout renews first term fight


09/04/25
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09/04/25

Trump coal plant bailout renews first term fight

Washington, 9 April (Argus) — President Donald Trump's effort to stop the retirement of coal-fired power plants is reminiscent of a 2017 attempt that faltered in the face of widespread industry opposition. Trump, in an executive order signed on Tuesday, directed the US Department of Energy (DOE) to tap into emergency powers to stop the retirement of coal-fired plants and other large plants it believes are critical to grid reliability. The order sets a 30-day deadline for DOE to decide which plants are critical based on a new methodology that will analyze if reserve margins, or the percent of unused capacity at peak demand, are at an "acceptable" level. The initiative shares similarities to Trump's unsuccessful effort in his first term to bail out coal and nuclear plants. In the 2017 effort, Trump backed a "grid resiliency" proposal to compensate power plants with 90 days of on-site fuel. But an unusual coalition of natural gas industry groups, manufacturers, renewable producers and environmentalists united against the idea, warning it would upend power markets and cost consumers billions of dollars each year. The US Federal Energy Regulatory Commission voted 5-0 to reject the proposal. It remains unclear if a similarly sized coalition will emerge to fight Trump's latest proposal, under which DOE would use emergency powers in section 202(c) of the Federal Power Act to keep some coal plants and other large power plants operating. Industry groups have largely been avoiding taking positions that could be seen as critical of Trump. Environmentalists say they strongly oppose keeping coal plants operating using emergency powers. Doing so would mean more air pollution and greenhouse gas emissions, they say, and higher costs for consumers. Environmental groups say they are hoping other industries affected by the potential bailout will eventually speak out against the initiative. "The silence from those who know better is deafening," Center for Biological Diversity climate law institute legal director Jason Rylander said. "I hope that we will start to see more resistance to these dangerous policies before significant damage is done." DOE said it was "already hard at work" to implement Trump's executive order, which was paired with other orders that were meant to support coal mining and coal production. US energy secretary Chris Wright said today that reviving coal will increase the reliability of the electrical grid and bring down electricity costs, but he has not shared further details on the 202(c) initiative. Trying to litigate the program could be "tricky", and section 202(c) orders have never successfully been challenged in court, in part because they are usually short-term orders, Harvard Law School Electricity Law Initiative director Ari Peskoe said. But opponents could challenge them by focusing on "numerous legal problems", he said, such as not allowing public comment or running afoul of a US Supreme Court precedent that prohibits agencies from attempting to decide "major questions" without clear congressional authorization. "Here DOE would use a little-used statute explicitly written for short-term emergencies in order to PREVENT a change in the US energy mix," Peskoe said. A projected 8.1GW of coal-fired generation is set to retire this year, equivalent to nearly 5pc of the coal fleet, the US Energy Information Administration said last month. Electric utilities often decide which plants to retire years in advance, allowing them to defer maintenance and to forgo capital investments in aging facilities. Keeping coal plants running could require exemptions from environmental rules or pricey capital investments, the costs of which would likely be distributed among other ratepayers. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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What do tariffs mean for the global gas market?


09/04/25
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09/04/25

What do tariffs mean for the global gas market?

Some countries are considering retaliatory tariffs, while others hope to reduce their trade deficit in order to negotiate lower rates London, 9 April (Argus) — Newly announced US tariffs on goods entering the country and some of the countermeasures already announced by large trade partners are unlikely to cause any direct disruptions to global gas markets. But the indirect effects on gas supply and demand may be huge, stemming from a weaker macroeconomic outlook, fuel substitution and inflationary pressures on infrastructure development. US president Donald Trump on 2 April imposed a minimum 10pc tax on all foreign imports from 5 April,with much higher tariffs on selected countries that briefly came into force on 9 April, before Trump announced a 90-day pause. China is the only exception. It has announced retaliatory tariffs that could disrupt US energy exports, resulting in an escalation that has already brought up the respective levies to 125pc in the US and 84pc in China. These are unlikely to have any direct impact on LNG trade flows, as China had already stopped importing US LNG earlier this year. But disruptions to trade between the world's two largest economies may weigh heavily on manufacturing activity in China, in turn reducing industrial gas demand. And the ripple effects of disruptions to US LPG exports to China may alter fuel-switching economics in the region and beyond. Most other countries in Asia-Pacific have opted not to follow China's lead by retaliating against US tariffs, even though many have warned about the potential for long-term economic disruption. The Japanese government intends to negotiate a better tariff deal and is considering investing in the US' proposed 20mn t/yr Alaska LNG export project as part of wider efforts to reduce its trade surplus with the US. Countries in Asia-Pacific have been hit with some of the highest of Trump's targeted duties. The EU is keeping retaliatory measures on the table, but these are unlikely to include any levy on US LNG. Europe has become much more reliant on LNG imports after losing the bulk of its Russian pipeline supply, and imposing tariffs on energy imports would only reignite inflationary pressures that European countries have tried to curb over the past three years. The bloc says it is ready to negotiate on possibly increasing its US LNG imports to reduce its trade surplus and would zero out its tariffs on industrial imports if the US agrees to do the same. But Trump says this offer is not enough, citing the EU's upcoming Carbon Border Adjustment Mechanism as one of the "unfair trade practices" that justifies a tariff response. Nerves of steel Much greater risks for gas markets may stem from rising infrastructure costs in the US' upstream and midstream sectors, particularly as a result of earlier tariffs imposed on steel and aluminum imports. These present an immediate risk for US LNG developers, particularly for the five projects under construction and the six others expected to reach final investment decisions this year. Metals account for up to 30pc of the cost of building an LNG export plant. An LNG terminal can cost $5bn-25bn to build, depending on its size, with steel used for pipelines, tanks and other structural frameworks. US facilities can be built using some domestic metal, but higher prices for this may lead to construction and final investment decision delays for the country's planned liquefaction projects. US tariffs' primary effect on the domestic gas market stems from duties levied on non-energy goods used by the oil and gas industry, including steel and specialised pipeline components such as valves and compressors, which are imported from overseas. The US remains a net natural gas importer from Canada , but these flows are unlikely to be affected by trade tariffs given the lack of alternative supply sources available to some northern US states. US LNG project pipeline mn t/yr Project Capacity Expected start/FID Under construction Plaquemines 19.2 2025 Corpus Christi stage 3 12.0 2025 Golden Pass 18.1 2026 Rio Grande 17.6 2027 Port Arthur 13.5 2027 Waiting for final investment decision Delfin FLNG 1 13.2 mid-2025 Texas LNG 4.0 2025 Calcasieu Pass 2 28.0 mid-2025 Corpus Christi train 8-9 3.3 2025 Louisiana LNG 16.5 mid-2025 Cameron train 4 6.8 mid-2025 Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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German coalition negotiations come to an end


09/04/25
News
09/04/25

German coalition negotiations come to an end

London, 9 April (Argus) — Germany's centre-left SPD and centre-right CDU parties announced a final coalition agreement today, which includes some changes to energy policy. The parties still need to sign off on the agreement. The SPD will ask its members to vote on the text, which it expects could take about 10 days. And the CDU plans to hold a small party conference on the topic at the end of this month, meaning that the new government could be sworn in by early May. The coalition still plans to abolish the gas storage levy "for all" as part of its plan to lower energy prices for households and industry. And the parties plan to introduce "suitable instruments" to ensure gas storage filling to safeguard security of supply in a "more cost-effective" way. There is a large focus on lowering energy prices for industry in the hope of turning the tide on Germany's continued industrial slump, for example through lower electricity taxes, a cap on power grid fees and special relief for energy-intensive industries "otherwise not reached by subsidy plans". The government plans to "make possible and flank diversified, cheap long-term gas contracts with international suppliers" and "use potentials of conventional domestic gas production". And while the government is "examining strategic state holdings in the energy sector, also with grid operators", it will reduce its shares in Uniper and SEFE — which it had acquired in the gas crisis in 2022 — to "strategic shares". The state needs to sell down its stake in the two companies by 2028 but will probably retain a minority share, with the EU allowing a maximum 25pc plus one share, energy ministry officials previously said . Support for gas-fired power The parties reiterated their commitment to encourage the buildout of up to 20GW of dispatchable power generation capacity, with no apparent requirement for the plants to be hydrogen-ready. The parties plan to put forward a bill to allow carbon capture and storage for hard-to-abate emissions from industry as well as gas-fired power plants "immediately after the beginning of the new parliament". The coalition said that the timing of the coal phase-out "has to be judged on how quickly it is achieved to build out dispatchable gas-fired capacities", but it still commits to ending coal burn by 2038. The government reiterated its plan to use grid reserve capacity to stabilise power prices rather than only to stabilise the grid during supply shortages. Associations have warned about the implications of letting grid reserve plants participate in the open market on investment incentives for new generation capacity. It also remains unclear how long it would take to get Brussels' approval for a new subsidy scheme for dispatchable power generation capacity, given that the EU approved the outgoing government's power plant strategy only after lengthy negotiations. Heating sector plan thin on detail The future of Germany's heating law remains unclear in the coalition agreement. The coalition agreement keeps the CDU's standpoint that the outgoing government's buildings energy act will be "abolished", which the SPD had not agreed with in the negotiation documents. But the parties said that a new buildings energy act will be more technology neutral and flexible, indicating that there will still be some legislation to reduce carbon intensity of the built environment. The parties propose a "reachable greenhouse gas avoidance" as the key variable of a new policy, instead of the percentage of renewable energy used in the system as under the existing law. This could end up supporting gas-fired over oil-based heating or providing an incentive to replace older gas boilers with newer models. But the government plans to retain subsidies for new heating systems and insulation measures, which provide large incentives for the uptake of heat pumps. Heat pump industry association BWP welcomed this commitment, combined with a pledge to reduce power prices by about €0.05/kWh, saying that these are "clear signals of an improvement in the framework conditions for the industry". The final coalition agreement again contains a reference to a possible green gas quota , which could support gas-based heating systems, for example through biomethane or hydrogen which could be used to fulfil the quota. The parties said today that they would work out a "roadmap for de-fossilised energy sources" and that it is important to "preserve gas grids which are important for a secure heat supply". By Till Stehr Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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