Social issues Japan’s policies to achieve carbon neutrality
GHG emissions reduction
Reducing greenhouse gas emissions by 46% by 2030
The Paris Agreement was adopted at the UN Climate Change Conference (COP21) held in 2015. The aim of this agreement is to achieve net-zero greenhouse gas (GHG) emissions. In October 2020, the Japanese government responded with a commitment to achieve carbon neutrality by 2050.
Japan’s Cabinet approved the Plan for Global Warming Countermeasures in October 2021. It establishes an interim target on the way to achieving caron neutrality — a 46% reduction in GHG emissions by fiscal 2030 compared to fiscal 2013 levels. This roadmap also states that Japan will continue strenuous efforts in its challenge to meet the lofty goal of cutting its emissions by 50%.
Renewable energy expansion
Boosting the share of renewable energy in the national energy mix by 2030
As part of efforts to achieve carbon neutrality, the Japanese government released its 6th Strategic Energy Plan in October 2021. The plan reiterated the objectives of making renewable energy the country’s main power source and to steadily promote decarbonization. To achieve this objective by 2030, the government further raised its target for the adoption of renewable energy — to reach a 36-38% share of the national energy mix by 2030.
*Created by Daiwa House Industry using information from the website of Japan’s Agency for Natural Resources and Energy
Industry challenges and response measures Emphasizing energy efficiency and energy generation
GHG emissions reduction | Challenges
Significant emissions reductions required in the residential and commercial sectors
The Plan for Global Warming Countermeasures also established greenhouse gas reduction targets for each sector of the Japanese economy. The Daiwa House Group’s businesses are mainly related to the residential and commercial sectors. The reduction targets to be achieved by 2030 for these sectors have been set at 66% and 51%, respectively (both compared to fiscal 2013 levels). As these two sectors accounted for approximately 30% of Japan’s greenhouse gas emissions in fiscal 2020, steadily reducing emissions in these sectors is important to achieving the nation’s overall target. However, if businesses were to reduce their emissions to meet these targets without changing the current energy situation, they would only be able to operate for less than half the week.
*Created by Daiwa House Industry using information from the website of Japan’s Ministry of the Environment
*Created by Daiwa House Industry based on the Plan for Global Warming Countermeasures (Cabinet approved, October 22, 2021)
If no changes are made to the energy situation, houses would only be able to use energy for one-third of the week, and commercial facilities would only be able to use energy for half the week.
* If buildings built to the 2013 standard continue to be used
GHG emissions reduction | Response measures
Reducing greenhouse gas emissions in the occupancy and use phase
A distinguishing characteristic of houses and buildings is their length of use. The average lifespan of a Japanese home is about 30 years, and most of the GHG emissions occur in the occupancy and use phase of its life cycle. For the Daiwa House Group, emissions generated in the occupancy and use phase of the buildings it produces account for approximately 48% of the GHG emissions of its entire value chain. Therefore, in order to reduce total emissions, the Group needs to construct buildings that require as little energy as possible when in use. Two keys to this are ensuring high insulation performance and installing energy-saving equipment.
Legislation to improve the energy-saving performance of buildings
Since the Building Energy Efficiency Act was enacted in 2015, national energy-saving standards have been taking effect, with requirements based on the purpose and size of new buildings. Full compliance will likely become mandatory for all new houses and buildings in April 2025. The goal is to make the standards steadily more rigorous thereafter, to ensure that all new buildings will achieve ZEH/ZEB-level energy-saving performance by 2030.
Renewable energy expansion | Challenges
Lack of suitable sites for solar facility construction
Since Japan’s adoption of a feed-in tariff system (FIT) in July 2012, the development and operation of large-scale solar power facilities (solar farms) has progressed rapidly. As a result, the level of renewable energy in Japan’s power source mix rose from 10% to 18% between fiscal 2011 and 2019, and renewable energy adoption has expanded. However, because of its small land area and mountainous terrain, Japan’s levels of solar power generation compared to total land area and usable flat land are already the highest among major developed nations. Suitable sites for solar farm construction that also ensure nature conservation and natural scenery preservation are becoming limited.
*Created by Daiwa House Industry using information from the website of Japan’s Agency for Natural Resources and Energy
*Created by Daiwa House Industry using information from the website of Japan’s Agency for Natural Resources and Energy
In the relatively small country of Japan, there is a shortage of suitable flat land for solar farm development while still ensuring conservation of nature and rural scenery.
Renewable energy expansion | Response measures
New options for securing installation sites
To ensure the continued adoption of renewable energy, Japan needs to develop its unused land, while ensuring that facilities can coexist with local communities. Due consideration must also be given to equipment safety as well as environmental and scenery preservation, while exploring possibilities for using uneven terrain. Moreover, the roofs of existing houses and buildings are effective choices for new solar installation. The Plan for Global Warming Countermeasures also clearly states that the use of these options should be maximized.
Business strategy Vision of the Daiwa House Group
Given Japan’s situation, as outlined above, the Daiwa House Group’s 7th Medium-Term Management Plan and Environmental Action Plan (Endless Green Program 2026) state that, “The more buildings we build, the more renewable energy will be generated, accelerating decarbonization of society.” This carbon neutral strategy will enable us to actively promote the adoption of ZEH and ZEB technology and the maximization of renewable energy use, thereby helping to address challenges faced by society.
Tackling the Challenge of Decarbonization -Our Strategy for Carbon Neutrality-
