The draft report notes that competition among power companies is becoming severe against the backdrop of electricity market deregulation and the prolonged suspension of the operation of nuclear power plants. It also points out the utilities’ marked tendency to look to the construction of thermal plants using coal, considered a cheap power source. “The situation is highly risky from an environmental viewpoint,” it warns.

Planned new coal-fired plants are expected to start operation in and after 2020. The MOE expressed a strong sense of crisis about that in relation to achieving Japan’s target of reducing CO2 emissions by twenty-six percent from 2013 levels by the year 2030.

When the MOE agreed with the Ministry of Economy, Trade and Industry (METI) last year to approve the construction of new coal-fired power plants, it conditioned its agreement on the reinforcement of measures to reduce CO2, which are to be reevaluated every year.