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This IEA report provides a comprehensive in-depth assessment of the energy policies of Japan, including recommendations for policy development. Since the last in-depth review in 1994, the two major themes in Japan's energy policy have been reform of the regulatory framework and measures to respond to climate change. Energy sector reform in the energy sector is an important component of overall policy on economic recovery. Increasingly, the market will be relied on to achieve a satisfactory outcome. Independent Power Producers have entered the electricity market since 1995. The report analyses anticipated further reforms to liberalise the market for extra-high-voltage consumers (28% of all supply) and to introduce accounting separation of the activities of the existing utilities. Approximately 90% of carbon dioxide produced in Japan is energy-related. Policy to reduce emissions from the energy sector is focused on drastic energy efficiency measures and on the promotion of nuclear power and "new energies". The review discusses the cost-effectiveness of present energy efficiency measures, but considers that the current nuclear energy production target is achievable.
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