Japan’s Approach to De-Risking
This week, Mike and Jude are joined by Mr. Tatsuya Terazawa, Chairman and CEO of the Institute of Energy Economics, Japan. Previously he served as the Senior Advisor of the Cabinet Office of Minister Yasutoshi Nishimura. Earlier he served at the Ministry of Economy, Trade and Industry (METI) of Japan where he held leading positions including the Vice-Minister for International Affairs. He is also the Senior Specially Appointed Professor at the Tokyo University of Science, where he teaches international negotiations. The conversation begins by examining how Tokyo is approaching de-risking and technology competition. They describe Japan’s early experiences facing economic coercion as a driving force behind its development of an economic security strategy. Next, they explore China’s role in the clean energy transition, emerging policy responses to its control of key inputs in the West, and the approaches U.S. and allied governments need to pursue to stay competitive. They note the importance of better coordination among stakeholders involved in climate politics, energy policies, and economic security. After discussing the dispute between China and Japan over the release of wastewater from the Fukushima nuclear facility, they end by examining the difficult balancing act of taking measures to reduce national CO2 emission while safeguarding partner state business interests.