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4.92. Japan's policy objective is to secure a stable supply of natural resources. The law and regulations on mining are under the purview of the METI, which delegated this responsibility to the Agency for Natural Resources and Energy. (...) The Japan Oil, Gas and Metals National Corp. (JOGMEC), which was formed in 2004 through the merger of the Japan National Oil Co. and the Metal Mining Agency of Japan, is charged with implementing the policies set by the METI. The JOGMEC, an incorporated administrative agency of the Government, contributes to a stable supply of metal resources which are indispensable for Japanese industry, is responsible for a wide range of fields, including surveying, exploration, development, production, stockpiling, recycling, and environmental protection.

4.100. To prevent environmental pollution caused by mining activities, support continues to be provided since 1973, with no expiry date, to cover a portion of the mine pollution control costs under a Loans for Mine Pollution Control scheme (FY2016 (settlement of accounts) JPY 189 million; FY2017 (settlement of accounts) JPY 807 million).

4.101. Japan has very few fossil fuel resources, and depends on imports for almost all its energy consumption except for nuclear-generated electricity and renewables energies. The energy self sufficiency ratio was 20% in FY2010 before the Fukushima accident, but fell to 8% in FY2016. Partial restoration of the share of nuclear power, increased energy efficiency, and the development of renewable energies are the three avenues through which Japan plans to reduce its dependency on imported fossil fuels. The aim is to reach an energy self-sufficiency ratio of 24% by FY2030.

4.103. The 2030 energy mix factors in Japan's commitments (Nationally Determined Contribution) for the reduction of greenhouse gases submitted to the United Nations Framework Convention on Climate Change under the Paris Agreement; these include a reduction by FY2030 of 26% of emissions compared to FY2013. This 2030 planned energy mix also includes an energy-saving target, through additional energy-efficiency measures, of about 30 million kl crude oil equivalent by 2030, with 2013 as the benchmark, leading to a total consumption of 330 million kl, compared to 360 million kl in 2013 and 350 million kl in 2017. It also plans a zero-emissions ratio target (the proportion of the electricity mix that does not emit greenhouse gases, i.e. renewables and nuclear) of 44% (renewable 22%-24%; nuclear 22%-20%), up from 12% in 2013 (renewable 11%, nuclear 1%), and from 19% in 2017 (renewable 16%, nuclear 3%).

4.104. As indicated above, the share of renewable energy (excluding nuclear) in the Total Primary Energy Supply is expected to grow from 11% in FY2017 to 13%-14% in 2030, according to the 2018 Strategic Energy Plan. Chart 4.8 provides the actual and planned relative shares of the various renewable energies in those totals.

4.105. The main policy development during the period under review was the adoption, in July 2018, of a fifth Strategic Energy Plan (SEP), replacing the 2014 SEP issued in the aftermath of the great east-Japan earthquake and the nuclear accident of Fukushima; stated objectives were the reduction of nuclear power and fossil fuel dependencies, and the expansion of renewable energies.

4.106. While the new Plan confirms the basic principles of Japan's energy policy (Energy security, Economic efficiency, Environment sustainability and Safety (3E+S)), it revises the 2014 Plan in view of the four years of implementation experience, and sets objectives for 2050; the previous Plan had a 2030 horizon. The Plan comprises two elements: a long-term energy supply and demand outlook for 2030 issued via a 2015 decision of the METI ("energy mix"); and the design of scenarios for 2050 with the aim of achieving energy transition and decarbonization through technological innovation.

4.107. The New SEP sets as a goal for 2050 the realization of the "hydrogen society", hydrogen being an efficient energy source, with no greenhouse gas emissions. Japan, therefore, plans to pursue the research already undertaken in this area. The Ministerial Council on Renewable Energy, Hydrogen and Related Issues, a special coordination body, created in April 2017 to deal with renewable energy issues, adopted, in December 2017, the Basic Hydrogen Strategy to that effect (for more elements on the subsidy programme for fuel cell vehicles, see Section 3.3.1.2).

4.108. Another significant development was the adoption by the Cabinet, in May 2018, of the Basic Plan on Ocean Policy, which contains a component on the development of offshore mineral energy and mineral resources. In this context, the Government revised the Plan for the Development of Marine Energy and Marine Mineral Resources in February 2019. This Plan contains, inter alia, support measures for resource mapping and technology development for better production of marine energy and deep-sea mineral resources, to an amount of JPY 37.89 billion for the duration of the Plan. This covers not only oil and natural gas but also methane hydrate gas.

4.109. The 2018 SEP indicates that the Government will propose measures aimed at utilizing solar power for residential consumption and as a distributed power source to carry out local production for local consumption. The support measures taken since application of the SEP include an annual JPY 2.8 billion subsidy scheme to support the construction of net zero energy houses equipped with storage batteries or electric vehicle charging/discharging facilities, and an annual JPY 2 billion subsidy scheme for companies constructing local micro grids i.e. energy systems which can be operated independently from large-scale electric power systems in case of blackout. The Government is also subsidizing the acquisition of storage batteries for residential and small factory use, based on a target/maximum eligible price system whose scales are described in Chart 4.9. Measures are also expected to be taken to ensure the proper recycling of used solar panels.