The Energy Transition toward Carbon Neutrality

In recent years, rising fossil fuel prices and carbon neutrality efforts (fig. 1) in many countries around the world have led to changes in the future form of energy systems and their transition into that future. Therefore, this paper describes perspectives for considering the shape of energy systems in the future as well as activities that are given high priority in the transition period. Recent trends and issues assumed to arise in the future are also presented.

Please note that, while the case studies in this paper discuss trends of and analyze the energy system of Japan, the paper was compiled under the assumption that this can be applied also in other regions that are on their way to carbon neutrality. This paper was prepared with the intention to provide an idea for concepts of and approaches to future energy systems or additional measures.

To deal with the rising fossil fuel prices and accelerate the process toward resource and energy security in the short term while realizing carbon neutrality in the future, we believe that it will be necessary more than ever before to: (1) transform the energy system (decentralization, digitalization, sector coupling), (2) maximize energy savings, (3) achieve a circular economy (recycling of resources and energy), and (4) promote Negative Emissions Technologies (NETs) (build a framework for international collaboration). This paper also provides an overview of these four activities.