It's interesting to observe how quickly Japan's energy policy is changing. A few days ago, news broke about new decisions by the Japanese government to expand the use of coal-fired power plants. Previously, such less efficient plants were restricted due to climate commitments, but now they are allowed to participate more actively in capacity auctions on the electricity market.

The reason for this shift is clear — an energy shock caused by the situation in the Middle East. The blockade of the Strait of Hormuz and supply issues with Qatar have made Asian countries dependent on these energy resources extremely vulnerable. Japan decided not to wait and has begun to more actively incorporate polluting fossil fuels to ensure energy security.

This demonstrates how, in Japan's energy sector, power plants are primarily viewed as a key tool for responding to crisis situations. Data from recent years show that coal remains the largest component of the country's energy mix. Despite all climate ambitions, when energy security is threatened, Japan's energy decisions tend to favor traditional solutions.

It’s fascinating how quickly priorities are being reassessed. Japan’s Ministry of Economy, Trade and Industry gave the green light to these changes during a meeting of its working group on Friday. Now, less efficient coal plants will be able to compete in capacity markets starting from the new fiscal year.

This is a common trend among many Asian countries — when it comes to energy stability, Japan tends to prioritize pragmatic solutions over long-term environmental plans. It will be interesting to see how this impacts global climate goals and whether this will be a temporary measure or a new normal.