Despite the continued efforts of Japanese automakers, the notion that hydrogen cars are the vehicle of the future is a pipe dream.
The loss of public faith in nuclear energy since the March 11, 2011, triple disaster has once again put the Japanese nation on the hunt for new solutions to its vast energy needs. Many voices have called for the dramatic expansion of renewable energy systems such as solar, wind, and hydro as the medium- to long-term answer to reduce the contemporary dependency on nuclear, as well as on CO2-producing forms of energy like oil and gas.
Japan is completing steps to launch a derivatives market for Liquefied Natural Gas (LNG). While oil has long been traded in both spot and future markets, LNG remains very much the province of long-term fixed-price contracts. Japan is one of the biggest consumers, accounting for some 40% of world imports.
Canada is one of those countries whose relations with Japan seldom prompt front page news. However, in addition to sharing some key interests, certain developments may help the relationship grow tighter over the coming years. These include energy, a field where Ottawa is a major player and Tokyo is in the midst of a major overhaul. The two countries are also taking steps in security and defense cooperation.
In the midst of Japan’s energy woes, prompted by the Fukushima disaster and reinforced by the uncertainty arising from the tensions in East Asia, the arrival for the first time of a Liquefied Natural Gas (LNG) tanker through the Arctic Ocean and into the Pacific Ocean offers hope and the chance to diversify away from the sea lanes Tokyo currently relies upon for the bulk of its energy imports. This is possible thanks to the gradual melting of Arctic Ocean ice, technological developments, and Russia’s policy of energy export diversification.
The long string of incidents off the Senkaku-Diaoyu Islands this summer and the wider maritime territorial disputes in East and Southeast Asia have been overshadowing a major development with great potential implications for Japan: The northern sea route, linking East Asia with Europe through waters traditionally closed by ice to commercial navigation, are increasingly accessible during the Arctic summer thanks to the global warming.