As Japan moves away from nuclear power plants, it has turned to renewables to diversify its energy mix. Auctions have emerged as a key policy tool for the transition.
Green hydrogen can help to cut emissions in energy-intensive, hard-to decarbonise sectors like steel, chemicals, long-haul transport, shipping and aviation. But electrolyser costs must be cut to make it economical.
Energy emissions from industry and transport could be cut to zero by 2060 with pro-active policies and investments. Renewables will be crucial.