Development of low-carbon energy sector in China and Japan: A comparative analysis

Japan and China are in the list of resource-deficient countries, and this fact largely determines the importance of pursuing a targeted policy for the development of low-carbon energy sectors. This refers, first and foremost, to renewable energy and hydrogen, but it is also worth taking into account the growing role of peaceful nuclear energy – Japan, despite the consequences of the Fukushima accident, is gradually increasing the share of nuclear power plants in its generation structure. The authors show that the tasks of achieving “net zero emissions” facing Japan and China have many similar features. The countries under consideration, undoubtedly, have different financial and economic resources, different potential and available capacity of their domestic markets for the implementation of low-carbon energy technologies and products in a broad sense. However, they build public policy in this direction based on the incentive mechanisms that create their own technological foundation, taking into account what advanced solutions are being developed and implemented by their closest competitors. Over the past two decades, Japan and China have elaborated the format of energy cooperation where the emphasis was placed on the supply of energy and transport equipment from Japan, as well as investments by Japanese companies in the construction of various energy infrastructure objects in China. However, at present, China already has sufficient technological potential not only to meet its needs in the production of equipment and components for low-carbon energy, but also to export products of this type. Accordingly, Japanese corporations that used to hold leading positions in the renewable energy segment as suppliers of necessary equipment and initiators of technology transfer to developing countries (mainly in Southeast and South Asia), nowadays face competition with Chinese producers. It is shown that, despite the existing controversy, Japan and China keep a high level of bilateral contacts through intergovernmental organizations and funds, joint research centers, various private business cooperation mechanisms and schemes, all of which foster the implementation of large projects.