The global energy sector is currently facing two major challenges.
The first is the need to further expand the adoption of renewable energy. To support this, the “GHG Protocol,” the international standard for calculating corporate greenhouse gas (GHG) emissions, is currently undertaking a significant revision of its Scope 2 Guidance.
The second challenge stems from geopolitical tensions in the Middle East, which have disrupted the supply chains of crude oil and LNG, putting the stable supply of electricity at risk. In response, countries across Asia, including Japan, are discussing reforms to their power systems and electricity trading frameworks, including the role of thermal power generation.
However, in Japan and other Asian countries, the expansion of renewable energy and the development of affordable and stable power supply systems—taking into account the entire energy mix, including thermal power—are being discussed separately, without sufficient integration.
What is now required is a realistic pathway that starts from each country’s existing energy mix and achieves both decarbonization and the stable, cost-effective supply of electricity in an integrated manner.