Strategic decarbonisation

February 23, 2025

For Pakistan, Japan’s experience offers valuable insights into managing its energy transition

Strategic decarbonisation


J

apan’s journey towards achieving carbon neutrality by 2050 has emerged as a model of careful planning, strategic investments and innovation-driven policies. Despite the challenges posed by global energy dynamics and geopolitical uncertainties, Japan has remained steadfast in its commitment to sustainable growth.

Progress reflects the outcomes of a comprehensive energy policy that integrates safety, energy security, economic efficiency and environmental sustainability into a unified framework.

The ambitious targets set by Japan, including a 46 percent reduction in greenhouse gas emissions by 2030 compared to 2013 levels and achieving net-zero emissions by 2050, underline the nation’s determination to lead global decarbonization efforts.

These achievements have been driven by the adoption of its green transformation (GX) strategy, which not only focuses on emissions reduction but also creates opportunities for economic growth. With a commitment of over ¥150 trillion in public and private investments over the next decade, Japan’s GX initiative has established a robust foundation for green innovation and sustainable industrial development.

Japan’s proactive measures, such as the introduction of GX Economic Transition Bonds worth ¥20 trillion, the implementation of pro-growth carbon pricing mechanisms and sector-specific investment strategies, have significantly strengthened the country’s ability to address emissions in hard-to-abate sectors like steel and chemicals.

The development of next-generation solar technologies, offshore wind power and hydrogen fuel infrastructure demonstrates a forward-looking approach to renewable energy. These advancements not only address domestic energy needs but also reinforce Japan’s position as a global leader in clean energy technologies.

For Pakistan, Japan’s experience offers valuable insights into managing its energy transition. Pakistan faces similar challenges, including heavy reliance on imported fuels, limited renewable energy capacity and the need for industrial modernisation.

Pakistan faces a dual challenge of ensuring energy security while transitioning towards a low-carbon economy. As a country ranked among the top 10 most climate-vulnerable nations, Pakistan must balance economic growth with its climate commitments under the Paris Agreement. Japan’s experience in achieving carbon neutrality by 2050 provides valuable lessons for Pakistan’s decarbonisation journey.

Pakistan contributes only 0.9 percent to global greenhouse gas emissions. However, its per capita emissions are expected to rise due to the growing energy demand. Using the Low Emissions Analysis Platform, Pakistan has developed a long-term decarbonisation roadmap, with the National Decarbonisation Scenario aiming for a 26 percent reduction in emissions by 2030 and 90 percent by 2050. However, achieving net-zero emissions requires significant technological and financial resources, which remain a challenge.

Japan’s green transformation strategy, which integrates economic growth with sustainability, offers a model for Pakistan to enhance its renewable energy capacity and industrial efficiency. Innovative financing mechanisms like green bonds, carbon pricing and public-private partnerships are key elements of Japan’s strategy that could attract investments into Pakistan’s renewable energy sector. Collaborations with Japan on hydrogen fuel, offshore wind power and next-generation solar technologies could accelerate Pakistan’s transition while ensuring energy security.

Using the Low Emissions Analysis Platform, Pakistan has developed a long-term decarbonisation roadmap, with the National Decarbonisation Scenario aiming for a 26 percent reduction in emissions by 2030. 

A crucial aspect of Japan’s decarbonisation efforts has been investment in hydrogen and ammonia technologies to decarbonise hard-to-abate sectors. Pakistan could leverage similar approaches, particularly in industries such as steel and transportation, by forging partnerships with Japan to access funding and expertise.

Offshore wind development, particularly along Pakistan’s coastal regions in Sindh and Balochistan, presents an opportunity to reduce reliance on imported fossil fuels and drive economic growth.

For Pakistan to successfully transition to a low-carbon economy, integrating Japan’s strategic insights into national policy frameworks is essential. By aligning policies with its Nationally Determined Contributions and leveraging international financial and technological support, Pakistan can foster long-term climate resilience while ensuring economic stability.

Learning from Japan’s strategic investments in green technologies and infrastructure could help Pakistan overcome these hurdles. By introducing innovative financing mechanisms such as green bonds or carbon pricing, Pakistan could attract investments to scale up renewable energy projects and enhance energy security. Additionally, collaboration with Japan on renewable energy technologies like perovskite solar cells and hydrogen fuel could enable Pakistan to address energy inefficiencies while meeting climate goals.

A significant aspect of Japan’s decarbonisation efforts is the development of hydrogen and ammonia technologies. Pakistan could leverage these technologies to modernise its industries, particularly in energy-intensive sectors like manufacturing and transportation. Partnerships with Japan could provide access to expertise and funding for creating a hydrogen-based value chain, opening avenues for regional cooperation and economic integration.

The importance of offshore wind power in Japan’s energy mix also highlights opportunities for Pakistan. With substantial wind potential along its coastline, particularly in Sindh and Balochistan, Pakistan can draw on Japan’s expertise to develop offshore wind infrastructure.

This would not only reduce dependency on imported fossil fuels but also create jobs and spur local economic growth. Similarly, Japan’s focus on energy-efficient systems and carbon capture and storage (CCS) technologies can guide Pakistan in addressing emissions from its industrial sector while aligning with global climate commitments.

Japan’s leadership in establishing the Asia Zero Emission Community emphasises the value of regional collaboration in achieving decarbonisation goals. By engaging with platforms like AZEC, Pakistan can benefit from Japan’s technological advancements and financial support for clean energy projects. Moreover, partnerships under the AZEC framework can enable Pakistan to enhance its regional trade competitiveness while pursuing sustainable development.

Given the promising opportunities, effective implementation of policies and projects will remain critical. Japan’s meticulous planning and transparent governance have been central to its success. Pakistan must adopt similar measures to ensure long-term sustainability. Strengthening public-private partnerships, fostering innovation and addressing regulatory challenges are essential steps towards building a resilient and sustainable energy sector in Pakistan.

The lessons from Japan’s green transformation highlight the potential for aligning economic growth with environmental sustainability. Pakistan, with its abundant renewable energy resources and strategic geographical location, has the opportunity to transform its energy landscape by adopting a similar integrated approach. By focusing on innovation, collaboration and effective policy implementation, Pakistan can accelerate its transition towards a carbon-neutral future while enhancing its economic resilience and global competitiveness.


The writer is a researcher based in Islamabad

Strategic decarbonisation