Oxford – The role of LNG in the North Asian energy transition

Japan, Korea, and Taiwan are facing challenges in meeting their emissions reduction targets as they strive to decarbonize their energy systems. The slow growth of renewables in the power sector means that there will be a reliance on LNG and coal imports for longer periods. Despite varying political approaches and energy circumstances, the three countries have common strategic challenges in decarbonizing their energy systems. While Japan struggles with uncertain nuclear restarts, Korea is progressing well with new nuclear plants, and Taiwan plans to wind down nuclear energy, leading to increased LNG imports. It is expected that LNG will play a significant role in the energy mix of these countries, despite aggressive emissions targets. The gap between emission reduction targets and reality has prompted discussions about the need for a Plan B, with LNG likely to play a key role in filling the gap. Mr Tatsuya Terazawa highlighted the importance of having a backup plan in place, especially considering the discrepancies between aspiration and reality in emissions reduction efforts.