JOGMEC Carbon Neutral Initiative：Basic Policy and Action Plan
The priority mission of JOGMEC is to secure a stable and affordable supply of energy and mineral resources to maintain and strengthen Japan’s industrial base, economic prosperity, and people’s everyday lives. JOGMEC is simultaneously actively working to reduce health, safety, and environment risks associated with resource development. In particular, regarding the issue of climate change, which is an urgent global challenge, JOGMEC established the “Carbon Neutral Promotion Headquarters” and formulated the “JOGMEC Carbon Neutral Initiative” in April 2021. The initiative clarified our direction for the entire organization to work on the issue based on three basic policies: “Strengthening efforts for clean resources and energy”, “Strengthening efforts for decarbonized fuels and technology”, and “Contributing to the development of systems necessary for decarbonization”.
Responding to the globally accelerated movement of climate change and decarbonization, JOGMEC is contributing towards the implementation of the governmental energy policy to achieve Carbon Neutrality by 2050 and the ambitious target for GHG (greenhouse gases) reduction by 2030. According to the sixth Strategic Energy Plan, which was formulated in October 2021 by the Government of Japan, an amendment to the JOGMEC law was executed. Consequently, we are undertaking further functions to assist Japan to achieve carbon neutrality; for example, offering financial support for production and storage of decarbonization fuels such as hydrogen, ammonia, and synthetic fuel, which is a chemical compound of CO2 and H, (hereinafter referred to as Hydrogen etc.) and CCS, and wind condition and geological surveys to support domestic offshore wind development.
Furthermore, according to the Act for the Promotion of Ensuring National Security through Integrated Implementation of Economic Measures, which was promulgated in response to the complicated international situation and change of socioeconomic structure, an amendment to the JOGMEC law was executed in August 2022. This amendment enables JOGMEC to implement subsidies to ensure a stable supply of specified key products.
JOGMEC will continuously work across the organization towards achieving carbon neutrality by 2050 based on the three basic policies. Specifically, we are accelerating efforts by implementing the updated-action plan which includes the additional functions in accordance with the amendment to the JOGMEC law.
The global landscape of natural and energy resources is becoming more complicated and unpredictable owing to contemporary changes in geopolitics and geoeconomics. Under such conditions, JOGMEC continues to contribute to the realization of a virtuous cycle of economy and environment for a decarbonized society in future via a stable resource and energy supply in Japan, while flexibly responding to the changing energy demands. Simultaneously, JOGMEC will take on the challenge of solving difficult issues while modifying and transforming roles and functions in response to societal demands.
Three Basic Policies for Achieving Carbon Neutrality
1. Strengthening efforts for clean resources and energy
Fossil fuels continue to play an important role because they are necessary while decarbonizing energy yet securing a stable supply of energy and an economic and rational foundation for a carbon-neutral society. Based on this understanding, we will strengthen efforts to reduce CO2 emissions in projects that develop fossil fuels and we will support the development of LNG from which CO2 emissions are relatively low. We will also strengthen efforts to develop renewable energy. Specifically, we will promote the development of geothermal resources, which are useful as a clean and base-load power source, and survey wind conditions and conduct geological surveys to support offshore wind development. Simultaneously, we will work on a stable supply of mineral resources to sustain the uptake of EV and renewable energy power plants as they are essential constituents for achieving carbon neutrality.
2. Strengthening efforts for decarbonized fuels and technology
We will promote efforts for decarbonized fuels, such as Hydrogen etc. We will strengthen support not only in fields where the technical knowledge of JOGMEC can be directly utilized, such as fossil fuel-derived hydrogen and ammonia, but also for renewable energy-derived Hydrogen etc. We will also contribute to the construction of hydrogen and ammonia supply chains and market expansion, while utilizing our relationship with resource-rich countries.
We will strengthen efforts for fossil fuel decarbonization technologies, such as CCS and carbon recycling. We will specifically maximize the use of technical knowledge of JOGMEC on the subsurface and surface characteristics and strengthen financial and technical support for Japanese companies in securing suitable sites for CCS.
3. Contributing to the development of systems necessary for decarbonization
We will contribute to the foundation of a carbon-neutral society through active participation in institutional studies that are essential for promoting decarbonization; these include carbon pricing, such as credit systems, as well as CO2 reduction evaluation methods and certification frameworks that form the basis of such initiatives.
Issued in April 2021
Revised in November 2022