Enabling energy system transition toward decarbonization in Japan through energy service demand reduction

Japan’s mid-century strategy for reducing greenhouse gas emissions by 80% in 2050 would require large-scale energy system transformation and associated increases in mitigation costs. Nevertheless, the role of energy demand reduction, especially reductions related to energy services such as behavioral changes and material use efficiency improvements, have not been sufficiently evaluated. This study aims to identify key challenges and opportunities of the decarbonization goal when considering the role of energy service demand reduction. To this end, we used a detailed bottom-up energy system model in conjunction with an energy service demand model to explore energy system changes and their cost implications. The results indicate that final energy demand in 2050 can be cut by 37% relative to the no-policy case through energy service demand reduction measures. Although the lack of carbon capture and storage would cause mitigation costs to double or more, these economic impacts can be offset by energy service demand reduction. Among energy demand sectors, the impact of industrial service demand reduction is largest, as it contributes to reducing residual emissions from the industry sector. These findings highlight the importance of energy service demand reduction measures for meeting national climate goals in addition to technological options.