Industry

The industrial sector (secondary industry) accounts for around a quarter of Japan’s GDP and around 29% of total final energy consumption. Given the country’s low level of energy self-sufficiency (12.1% in 2019) and high level of fossil fuel use in industry (71%), this sector represents a challenge both in terms of decarbonisation and energy security.¹^,²^,³

Fuel share provided refers to energy demand only from the industry sector.

Graph description

Energy mix composition in the industry sector in consumption (EJ) and shares (%) for the years 2030, 2040 and 2050 based on selected IPCC SR1.5 global least costs pathways.

Methodology
- Downscaling the energy mix in the final energy demand sectors
Data References
- Historical energy consumption : IEA WEB 2021

Japan has made efforts to improve the energy efficiency of industry which has led to a relatively steady decrease in industrial energy consumption (25% decrease over the period 1990-2019).⁴ This decrease was primarily due to a reduction in oil use. The consumption of other fuels has remained fairly steady over the last three decades, however, natural gas consumption steadily increased up until 2007 before levelling out.⁵

With the reduction of oil consumption has come a corresponding reduction in emissions. On average, emissions have decreased at an annual rate of 1% over the period 1990 to 2019. As part of its NDC, Japan has set a target of 38% GHG reductions for the industrial sector from 2013 levels by 2030.⁶^,⁷

By comparison, the 1.5°C compatible pathways show, at the median, around a 3% annual emissions reduction out to 2025, increasing to around 6% afterwards and until 2040. Under the pathways, emissions from industrial energy demand would reach net zero between 2048 and 2050. Industrial process emissions would fall by around 50% from 2019 levels by 2030 and 75% by 2050.

The pathway to net zero emissions in this sector would necessitate an increase in the use of electricity, hydrogen, and biomass. The share of these energy sources in industrial final energy would increase from 39% in 2019 to 43-51% by 2030, and 65-95% by 2050. A renewable energy-based power sector would provide the majority of industrial final energy by around 2040.

Direct CO₂ emissions only are considered (see power sector for electricity related emissions, hydrogen and heat emissions are not considered here).

Graph description

Direct CO₂ emissions of the industry sector in selected 1.5°C compatible pathways.

Methodology
- Downscaling power carbon intensity
Data References
- Historical energy consumption : IEA WEB 2021
- Historical energy emissions : IEA GHG emissions from Energy database 2021

Graph description

1.5°C compatible CO₂ emissions pathways. This is presented through a set of illustrative pathways and a 1.5°C compatible range for total CO₂ emissions excl. LULUCF. The 1.5°C compatible range is based on global cost-effective pathways assessed by the IPCC SR1.5, defined by the 5th and 5th percentiles.

Data References
- Sectoral emissions from PRIMAP-Hist 2021 scaled to total GHG emissions of the country

Indicator	2019	2030	2040	2050	Decarbonised industry sector by
Direct CO₂ emissions MtCO₂/yr	227	94 to 116	23 to 49	4 to 15	2048 to 2050
Relative to reference year in %		-59 to -49%	-90 to -78%	-98 to -93%

Indicator	2019	2030	2040	2050
Share of electricity per cent	36	32 to 41	48 to 53	58 to 70
Share of electricity, hydrogren and biomass per cent	39	43 to 51	52 to 80	65 to 95

Fuel share provided refers to energy demand only from the industry sector. BECCS are the only Carbon Dioxide Removal (CDR) technologies considered in these benchmarks.
Only direct CO₂ emissions are considered (electricity, hydrogen and heat emissions are not considered here; see power sector for emissions from electricity generation). All values are rounded. Year of full decarbonisation is based on carbon intenstiy threshold of 5gCO₂/MJ.

IEA. Japan 2021 - Energy Policy Review. Int. Energy Agency (2021). ↩
Statistics Bureau of Japan. Statistical Handbook Japan 2021. (2021). ↩
In 2018, Japan’s industrial sector consumed 116 Mtoe including non-energy use (34 Mtoe). Oil accounted for 43% of the total, with coal and natural gas making up 18% and 10% respectively. Electricity accounted for 25% of consumption and biofuels 3%. The majority of industrial fuel consumption was due to the chemical and petrochemical industries (43% in 2018).[^8] With regards to GDP, here we use the term secondary industry to refer to mining, manufacturing, and construction, as per the Statistical Handbook of Japan.[^9] Value is current as of 2019. See table 3.3 therein. ↩
Japan’s push for energy efficiency improvements began as a response to the two oil crises of the 1970s, as exemplified by the Energy Efficiency Act enacted in 1979. The Act has been updated with major revisions since then, such as the introduction of the aforementioned Top Runner Program in 1998. The latest revision to the Act occurred in 2018.[^10] ↩
The consumption of electricity decreased after by around 20% between 2006 and 2008 due to the Global Financial Crisis and has yet to recover. ↩
Government of Japan. Japan’s Nationally Determined Contribution. (2021). ↩
This average reduction takes into account the significant declines which occurred during the Asian (1997) and Global (2007-08) Financial Crises. ↩

What is Japan's pathway to limit global warming to 1.5°C?

Japan's energy mix in the industry sector

petajoule per year

Japan's industry sector direct CO₂ emissions (of energy demand)

MtCO₂/yr

Japan's GHG emissions from industrial processes

MtCO₂e/yr

1.5°C compatible industry sector benchmarks

Cookie settings

Statistics

Google