【Report】 JERA Report: Is Japan's top CO2 emitter really aiming for zero emissions?

Japan’s energy policies are still unable to break the country’s dependence on fossil fuels because the legacy power companies are being protected. In particular, the actions of JERA Co., Inc., Japan’s largest energy company and largest CO₂ emitter, have had a major influence on Japanese policies. In October 2020, JERA announced the policy “Zero Emissions 2050.” Since then, it has declared itself as “leading Japan’s decarbonized society,” but a variety of Japanese energy policies to realize a “decarbonized society” were subsequently put in place that actually benefit JERA. Examples of this include policies that promote excessive investment in hydrogen and ammonia as contained in the government’s Strategic Energy Plan, a variety of legislative amendments, and the Green Transformation (GX) Basic Policy. In fact, the government’s current energy policies bolster the direction JERA has taken, together with generous assistance from national finances. This report reveals that JERA continues to emit a massive amount of CO₂ despite its commitment to “Zero Emissions,” and shines a light on the government’s generous support for JERA despite it being a such a huge emitter.

Key takeaways from this report:

JERA was established by a merger of the thermal power generation divisions of Tokyo Electric Power Company (TEPCO) and Chubu Electric Power Company. It is the largest energy company and largest CO₂ emitter in Japan.
Despite having declared a message of “Zero Emissions 2050 ” for its domestic operations, JERA has been working to build new coal- and LNG-fired power plants since 2020 and is attempting to keep its existing thermal power plants operating. A pillar of JERA’s “Zero Emissions” concept is ammonia co-firing with coal, which is entirely inconsistent with the 1.5°C target.
JERA’s policies have had a profound impact on Japan’s energy policy, and a series of generous government policies and financial measures have been rolled out to support JERA’s business.
JERA has been running advertising campaigns proclaiming it can create “CO2-free fire.” These ads mislead people to think that ammonia fuel does not emit CO₂ and give the impression that JERA is seriously addressing global climate change, but this is all greenwashing.
JERA is involved in a wide range of energy-related projects around the world, from resource development to power generation projects. JERA presents LNG, renewable energy, hydrogen and ammonia as pillars of its future business development, and in particular, is actively expanding its procurement of LNG, hydrogen, and ammonia.