In response to Japan’s release of a revised Nationally Determined Contribution under the Paris Agreement, Director of the Asia Investor Group on Climate Change, Rebecca Mikula-Wright, said:
“It is discouraging to see that Japan’s revised pledge under the Paris Agreement contains no immediate commitment to greater emissions reductions. In February, global investor organisations wrote to Prime Minister Abe encouraging Japan to create a positive signal for new investment by setting a more ambitious short-term emissions reduction target by 2030 and setting a clear pathway towards zero emissions.
“The transition towards a zero-carbon economy is a tremendous investment opportunity and one that can help with economic recovery following the global COVID-19 pandemic. There are hundreds of trillions of yen in private international capital that investors could deploy into clean technologies and other climate solutions if governments like Japan create the right policy and price signals.
“We note the Japanese Government has flagged it will consider increasing the ambition of its emissions reduction goals after a review and before the next formal submission date under the Paris Agreement. It should now immediately consider how it can unlock investment to accelerate transition plans by 2030 and fully decarbonise by 2050 in line with the Paris Agreement goals. If market signals for the zero-carbon transition remain weak in Japan then international investment will likely flow to other countries with more robust low-carbon policies that spur investor confidence.”