Strategy and Approaches of Japan's Energy Diplomacy

April 2004

Japan is dependent on foreign sources for over 80% of its primary energy supply. The Ministry of Foreign Affairs is engaged in the following six issues of energy diplomacy to strengthen Japan's energy security.

1. Maintaining and Enhancing Emergency Response Measures

(1) Japan is engaged in the improvement and enhancement of international emergency response systems, focusing on the oil stockpiling system of the International Energy Agency (IEA).
(2) Through the utilization of regional cooperative frameworks such as ASEAN+3 and Asia-Pacific Economic Cooperation (APEC), Japan is making efforts to create the emergency response systems in the Asian region.
(3) As of September 2003, Japan's oil stockpiles amount to 167 days (based on the Petroleum Stockpiling Law).

2. Maintaining and Enhancing Friendly Relations with Middle East Countries, other Energy Producing Countries, and Countries along International Shipping Lanes

(1) Japan is promoting dialogue among oil-producing and oil-consuming countries at the multilateral level (e.g. Based on the decision of the 8th International Energy Forum, which was hosted by the Government of Japan in September 2002, a permanent secretariat was established in Riyadh. The next International Energy Forum will be held in Amsterdam in May 2004).
(2) Through dialogue with Organization of Petroleum Exporting Countries (OPEC) Japan is seeking to build strategic partnerships with them.
(3) Japan continues to hold dialogue with energy producing countries and countries along international shipping lanes.

3. Diversification of Sources of Energy Supply

To diversify sources of oil supply Japan is working to strengthen relations with relevant countries and improve the investment environment. (e.g. Japan is strengthening cooperation in the energy sector with the Russian Federation, including the Sakhalin Project).

4. Diversification of Energy Sources

(1) Compared with oil, natural gas is more diversified in geographic terms and environment friendly, Japan is making efforts to create an environment for the further use of natural gas (e.g. the Sakhalin Project).
(2) Considering international cooperation with regard to the use of renewable and new energy, Japan is seeking to build cooperative relations with international community in an appropriate format for Japan.

5. Promoting Energy Saving, Efficient Use of Energy, Development and Use of Alternative Energy and Response to Environmental Issues

(1) Energy issues must be addressed, aiming at the goal of simultaneous achievement of the three "Es": economic growth, energy security and environmental protection. Consequently, Japan is promoting international cooperation to expedite the use of energy which exerts minimal burden on the environment (e.g. greenhouse gas emissions) and to develop and disseminate its technology.
(2) Through multilateral (international organizations such as IEA) and bilateral consultations (Japan-Russia, Japan-China, Japan-India and Japan-Australia, etc.), Japan is promoting investigation and international cooperation concerning energy saving, the efficient use of energy and the development and use of alternative energy sources.
(3) Japan is making efforts to raise international understanding with regard to Japan's nuclear energy policy.
(4) Japan is engaged in promoting the diffusion of renewable energy to developing countries.
(5) Japan is working to promote international cooperation in achieving the greenhouse gas reduction targets stipulated in the Kyoto Protocol (e.g. joint implementation on a bilateral basis and promotion of the Clean Development Mechanism).

6. Approaches to Creating an Environment for the Enhancement of Global Energy Security

(1) Japan supports reforms based on market principles in the energy sectors of the Commonwealth of Independent States (CIS) members, Central and East European countries and endorses the geographical expansion of legal frameworks through the activities of the Energy Charter Treaty.
(2) Japan is implementing cooperation for development of energy resources and infrastructure improvements in energy producing countries.

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