The Japanese-German Energy Partnership

The first session of "Zoom In! - Japanese German Energy Transition Talks" took place on the 6th of July! We want to thank all participants and panelist for their insightful presentations and the active discussion regarding the current state and future prospects of carbon pricing in Germany/ the EU and Japan. The next session will take place on 21 September 2023 on the nexus between circular economy and climate protection.
 
In the first session, Theresa Wildgrube (adelphi) outlined the guiding framework for the EU-ETS and the German national ETS as a major driver for decarbonization throughout many sectors. Moreover, she discussed the future alignment between the national mechanism and the EU-ETS 2 in the future. Both mechanisms can be understood as umbrella policies for emission reductions alongside sectoral policies (mainly support for RES, EE and related infrastructure), driving the shift towards a low-carbon economy in Europe. Nonetheless, she stressed that social impacts need to be considered in the implementation and price stabilization mechanisms and the redirection of revenues towards social climate funds have to be in place to shield and support vulnerable groups and small enterprises.
 
Dr. Naoki Matsuo (Institute for Global Environmental Strategies (IGES)) positioned Japan's new carbon pricing policy as a new funding instrument for industrial policy within the Green Transformation (GX) Strategy, rather focused on financing climate industrial measures and R&D of new technologies, than actual emission reduction through price effects. Dr. Matsuo further outlined the regulatory framework of the the GX ETS (in a pilot phase until 2025). He expressed his concerns about the potential limitations due to voluntary participation and target setting by participating companies. Nonetheless, he pointed out, that industry had welcomed this approach so far. In the following discussion, the European Carbon Border Adjustment Mechanism (CBAM) was not seen as an imminent threat to Japanese industry, but with potential increasing effects in the future phase of the CBAM mechanism, extending e.g. to scope 3 emissions.  
 
"Zoom In! - Japanese-German Energy Transition Talks" is jointly organized by the The Japanese-German Energy Partnership Team – German Chamber of Commerce and Industry in Japan (AHK Japan), OAV - German Asia-Pacific Business Association and adelphi – and the German-Japanese Energy Transition Council (GJETC). In the respective sessions, which will take place online in the coming months, current developments related to the energy transition in both countries are highlighted and discussed.

On Monday, May 22, the workshop on increasing public acceptance of wind energy projects took place in Tokyo. The workshop, was opened with introductory words by Marcus Schürmann, CEO and Delegate of the German Chamber of Commerce and Industry in Japan (AHK Japan). He emphasized that public acceptance is a result of open dialogue and appreciation of the values of the various stakeholders, and that exchange formats are therefore of great importance.

The introduction was followed by presentations of current developments in the field of wind energy policy in Germany by Anton Hufnagl (Federal Ministry for Economic Affairs and Climate Action), and in Japan by Keisuke Muto (Ministry of Economy, Trade and Industry). Both speakers emphasized the significance of public acceptance for the promotion of important renewable energy projects and addressed the respective country-specific challenges and efforts in the development of wind power.

The subsequent expert keynotes by Irina Rau (IZES gGmbH), Dr. Memi Motosu (Nagoya University), Akihiro Sando (Renewable Energy Institute) and Wiebke Heider (Energiewende Mediation) gave the participants interesting insights into what public acceptance means in theoretical, concrete and practical terms, what factors play a role in this, what influence energy projects can have on a regional level and what solutions need to be considered.

The workshop showed that in Japan, in particular, the challenge of reconciling fisheries with the development of offshore wind energy projects is a complex one, where various interests and local circumstances must be taken into account in order to reach a viable consensus among all stakeholders. In Germany, by contrast, onshore wind energy plays a more important role because suitable areas near the coast for offshore wind energy are more limited. Public participation in the wind energy expansion process is therefore also a major issue, because wind turbines alter the appearance of the landscape and civil opposition to them must be taken seriously.

The experts argued that communication and understanding for different interests as well as the early involvement of affected stakeholders are particularly important elements that should be considered crucial for successful project implementation.

A panel discussion with experts from industry, research and municipal administration as well as a group discussion format concluded the workshop. The group discussions proved to be of great value, giving participants the opportunity to discuss what causes, concerns and obstacles need to be overcome in order to implement wind energy projects more quickly in the future and in harmony with the local population and other stakeholders.

Many thanks to all experts for the interesting impulses and to all participants for their active participation, especially in the insightful discussions.

Offshore wind power is expected to play a major role as Japan and Germany, both industrialized nations, work toward carbon neutrality. The Wind Expo at World Smart Energy Week, in which the The Japanese-German Energy Partnership Team exhibits at the German Offshore-Wind Booth, takes place at Tokyo Big Sight from March 15 to March 17.
 
On March 13, we organized as a pre-event and as an activity of the WG “Energy transition” of the Japanese-German Energy Partnership the "German-Japanese Offshore Wind Industry Forum & B2B Matching" at the Shimbashi AP in Tokyo. Around 100 experts attended this forum and more than 20 business meetings were realized.
 
We would like to thank Dr. Lucas Witoslawski, COO of the German Chamber of Commerce and Industry in Japan (AHK Japan) and Ms. Susanne Welter, Minister Counsellor for Economic and Scientific Affairs at the Embassy of the Federal Republic of Germany in Japan for their opening remarks. We would also like to thank our keynote speakers, Ms. Reina Kodera of the Agency for Natural Resources and Energy (ANRE) at the Ministry of Economy, Trade and Industry (METI), and Mr. Hiroshi Matsuo, Lecturer at Nagasaki Ocean Academy for taking the time despite their busy schedules to give us insightful presentations.
 
Further, we would like to thank all companies which presented their cutting-edge technologies and solutions in the field of offshore wind power, as well as all those who actively participated in the forum and B2B meetings.
 
We are optimistic that this forum has contributed to the business activities of the participants, has promoted Japanese-German cooperation, and further accelerated the transition toward a renewable energy supply and climate neutrality.
 

On March 1, the Japanese-German Energy Partnership Team with the kind support of the German-Japanese Energy Transition Council organized a vivid exchange on women empowerment at the German Chamber of Commerce and Industry in Japan (AHK Japan) with a focus on “women in leadership in the energy sector” to address gender inequalities and develop strategies to support women on their career paths in the sector. We are more than glad to contribute to the cause of gender equity in the energy sector and are grateful to initiatives, that work tirelessly for this goal, such as Women Energize Women or Global Women’s Network for the Energy Transition

Again, we want to cordially thank Dr. Kathrin Goldammer from the Reiner Lemoine Institute and Mika Ohbayashi from the Renewable Energy Institute to share their inspiring stories and perspectives about their career paths and female leadership with us. The event gave the participating women space to exchange ideas and give each other advice. This led to an open and honest round of discussions followed by further personal conversations and exchanges.

A detailed report on the event with selected visual impressions can be found here.

On February 27, an expert workshop on waste heat utilization took place at the Institute for Gas and Heating (Gas- und Wärme Institut, GWI) in Essen. The workshop co-organized by ECOS, NEDO and adelphi on behalf of the German-Japanese Energy Partnership gathered Japanese and German experts in the field of waste heat utilization from policy, research, associations and industry. The workshop was opened by welcoming remarks from the hosts Margit Thomeczek and Prof. Dr. Klaus Görner (both GWI) as well as by Peter Beck from ECOS Consult. Masashi Hoshino from the Ministry of Economy, Trade and Industry (METI) and Dr Falk Bömeke from the Federal Ministry for Economic Affairs and Climate Action (BMWK) welcomed the participants via video messages and emphasized the importance of the heating transition and German-Japanese exchange on technologies, policies and cooperation opportunities. The one-day workshop was divided into three theme-based sessions. The morning session focused on the current status of and an outlook on waste heat utilization in Germany and Japan. The second sessions provided examples of waste heat utilization from different sectors and the third session was dedicated to the circumstances and challenges with regard to waste heat infrastructure. The program was completed with panel discussions on the political framework of waste heat utilization, efficient district heating and cooling networks and cooperation opportunities between Japan and Germany in the field of waste heat. The workshop was followed by two days of site-visits of waste-heat related projects and technologies in Germany for interested participants, especially for the guests from Japan. Among the sites were visits of thyssenkrupp Steel in Duisburg and of Georgsmarienhütte, where waste heat from steel production is used for district heating.

The acceptance of renewable energy was the issue of the latest Fireplace Talk, which took place on the 5th of December and was jointly organized by adelphi and the German Chamber of Commerce and Industry in Japan. 

In her welcoming remarks, Ms. Susanne Welter (Minister Counsellor for Economic and Scientific Affairs, Embassy of the Federal Republic of Germany) talked about the relevance of renewable energies to achieve climate goals. She continued by outlining the challenges and possible conflicts that result from the buildup of the renewables, especially in rural areas, and the need to address socio-economic aspects in this regard.

This was followed by two presentations on the acceptance of reneweable energies in Germany and Japan by Ms. Dr. Dörte Ohlhorst (Researcher and Lecturer, Munich School of Politics and Public Policy, Chair of Environmental and Climate Policy, Technical University of Munich) and Mr. Akihiro Sando (Senior Researcher, Renewable Energy Institute). Ms. Ohlhorst presented different factors that can support or deteriorate the acceptance for the development of renewable energies. Moreover, she provided German best-practice expamles for the participation of citizens in development processes and outlined guidelines that could possibly be transferred to Japan. In his presentation, Mr. Sando explained why local acceptance is very important in Japan. He identified a bottleneck regarding renewable energy and claimed that without consensus building with the local communities the deployment of renewables in Japan would fail.

In the following discussion, participants had the opportunity to report on their experiences with scaling up renewable energies as well as discuss challenges and possible solutions. A key emphasis was put on the importance on stakeholder involvement from the very beginning of planning and development processes. Further, information and knowledge about the relevance of the energy transition and possible economic benefits, e.g. through investment possibilities or lower energy costs, for local communities can result in higher acceptance.  
 

More than 90% of the population in Japan and 75% in Germany live in cities. Urban infrastructure is significantly affected by climate change. Cities - both metropolitan areas and municipalities - can provide a response to the impacts of climate change and make a significant contribution to reducing greenhouse gas emissions. Many cities in Japan and Germany have already set ambitious targets for climate neutrality and activities for the transition to climate-friendly, resilient and liveable cities.

Against this backdrop, the 12th German-Japanese Environment and Energy Dialogue Forum (EEDF) provided insights into policy measures to support cities on their way to "Net Zero". Stakeholders from cities and municipalities as well as from industry and science presented examples of concepts, best practices, demonstration projects and innovative technologies in Germany and Japan for smart grids, use of renewable energy and hydrogen, mobility concepts, district heating and urban circular economy to achieve the common goal of “Net Zero”.

We hosted an insightful expert Workshop on hydrogen hubs as part of WG2 of the Japanese-German Energy Partnership. Industry representatives and public authorities from both countries exchanged their hydrogen hub experiences and discussed respective milestones and bottlenecks. After a warm welcome by Tomohiko Adachi from the METI, and Dr. Wolfram Wilde from the BMWK, the first part of the workshop gave room to political perspectives on the planning and implementation of hydrogen hubs by NOW GmbH, the Ministry of Economic Affairs, Industry, Climate Action and Energy of the State of North Rhine-Westphalia, and the Energy Agency of the Fukushima Prefecture. They agreed that strategic planning involving all stakeholders and good public-private cooperation is key for the development of a hydrogen ecosystem and that hydrogen hubs constitute the perfect format for engaging multiple actors, promoting synergies and lowering uncertainties. The second part of the workshop turned to practical perspectives on business engagement in hydrogen hubs. Dr. Keita Nakajima from Toshiba Energy Systems & Solutions Corporation presented the Fukushima Hydrogen Energy Research Field (FH2R) where solar energy is used for producing green hydrogen, and Bastian Gerstner-Riewer from Mitsubishi Heavy Industries EMEA, Ltd. gave an overview of the state and progress of the Hamburg Green Hydrogen Hub. The subsequent discussion shed light on the crucial role of overcoming regulatory challenges and the synchronization of funding schemes for de-risking. Moreover, it emphasized the need for both local and national governments’ support. We would like to thank all participants for their presence and engagement in the discussions!

It was a pleasure to host, with our AHK colleagues, a Fireplace talk on the Application Possibilities of Ammonia in various industry sectors this week.

Susanne Welter, from the German Embassy in Japan, opened the session with welcoming speech that focused on the challenges in the energy sector regarding the Russian invasion on Ukraine, and the importance of bilateral and international cooperation.

The current and potential future role of ammonia in decarbonization efforts was subsequently highlighted by ZBT, and the Clean Fuel Ammonia Association. In particular, the work of the CAMPIRE ALLIANCE was presented. Industry, research institutes and international parts have come together to collaborate on the development of an ammonia eco-system via the support of BMWK and BMBF. Green Ammonia could support the storage of renewable energy or be utilised in the shipping industry. Further to this, the Clean Fuel Ammonia Association stressed the importance of standardization and certification for international ammonia cooperation.

The subject of the Fireplace Talks on 20 May, jointly organised by AHK Japan and adelphi, was the topic of energy security, which was attended by experts from science and industry from both countries. Dr. Jacopo Maria Pepe from the German Institute for International and Security Affairs (Stiftung Wissenschaft und Politik) and Mika Ohbayashi, Director of the Renewable Energy Institute, addressed energy security from a German and Japanese perspective and discussed the current challenges and possible future prospects. This was followed by a lively discussion on the question of how an equally secure, affordable and sustainable energy supply can be guaranteed.

As the last event in 2021, a Fireplace Talk on 2 December invited experts and company representatives from both countries to an exchange on the topic of "Efficient production of green hydrogen". In the first of three keynote presentations, Dr. Deutsch, programme manager for hydrogen at Agora Energiewende, offered an insight into his research on the policy instruments needed to make green hydrogen competitive. As a best practice example, Mr Groh and Mr Hamilton from BayWa r.e. presented their projects in Germany and the Netherlands, which focus on the production of green hydrogen with solar energy. Mr. Kajiki from the Green Energy Division of Obayashi Corporation presented another best practice example: Demonstration projects in Kokonoe, Japan and Taupo, New Zealand are producing green hydrogen using geothermal energy. The subsequent open discussion focused on issues such as efficient production methods for green hydrogen using regional resources and infrastructure, potential for cost reduction and possible Japanese-German cooperation in the field of green hydrogen projects.  
At the beginning of the year, the main task was to make plans and define the measures within the framework of the Japan-Germany Energy Partnership for 2022. The two working groups will therefore meet in the first quarter of 2022 to decide on the priorities and concrete activities for 2022.

On November 15, 2021, an expert workshop on offshore wind energy took place. The focus of the workshop was on policy and support measures for offshore wind. More than 120 participants from ministries, JETRO (Japan External Trade Organization) and relevant companies took part in the format that offered networking space for companies and associations from both countries to seize the opportunity and initiate cooperation. An important takeaway of the workshop was that grid connection and stability is an important issue for both Japanese and German companies.

On November 9, an expert meeting on "Green Hydrogen for Decarbonization" took place. After presenting the latest political developments, in particular the German funding guideline for the provision of financial support to international hydrogen projects, the event offered industry representatives from both countries the opportunity to discuss prerequisites for successful cooperation. The expert meeting also provided networking spaces that were specifically designed to hydrogen supply chain topics including production, transportation, storage and utilization of green hydrogen.

Within the framework of WG2 (Hydrogen), a digital expert workshop on the topic of "Green Hydrogen for Decarbonisation" took place on 8 June 2021. A total of 40 participants, including representatives of both partner ministries and relevant companies, took the opportunity to exchange ideas on policy approaches to promote the market ramp-up of green hydrogen as well as thematic priorities and ideas for possible joint cooperation projects. On 28 June 2021, the annual high-level steering group meeting also took place, which set the direction for this year's energy partnership work. Within the framework of WG1 (energy transition), the exchange will focus on the three topics of offshore wind, energy management and digitalisation, and energy efficiency in industry. Within the framework of WG1, a follow-up to the expert workshop in June on possible hydrogen cooperation projects between companies in both countries is planned. Other thematic focal points include the use of hydrogen to decarbonise industry and the transport sector, as well as possible projects in third countries.

The 11^th German-Japanese Environment and Energy Dialogue Forum took place from February 16-18, 2021. Experts from politics, business and science discussed political, technical and social paths to a greenhouse gas neutral industry.

On 27^th and 28^th of August 2020 a virtual expert meeting took place in preparation of the second Energy Transition Working Group Meeting. The first day focused on the current political developments with respect to system integration of renewables and the digitalization of the energy transition, whereas the second day discussed different technologies and solutions.

The format of the Fireplace Talk allows an exchange in a smaller, less formal round. During the 6^th Fireplace Talk, 23 representatives from business, politics and science from both countries came together in Tokyo to exchange ideas on offshore wind technologies. The discussion focused on opportunities for technological cooperation, the design of regulatory frameworks and funding mechanisms.

On October 29^th and 30^th 2019, around 250 Japanese and German experts from politics, business and research discussed climate and energy policy as well as the current state of research in innovative solutions at the 10^th German-Japanese Environmental and Energy Dialogue Forum in Tokyo.