Japan faces fundamental energy security challenges as an island country with sparse natural resource endowments and no international pipelines or electricity connections

John

Japan looks to the Gulf as it bets big on hydrogen

Volatile energy markets have pushed fossil fuel prices to multi-year highs. In China, concerns around energy security, namely supply security and affordability, have risen to the top of the policy agenda.[1] Heightened awareness among Chinese decision makers of the risks from a chaotic energy transition has bolstered their determination to manage its pace, that is, to find a balance between ensuring energy security and limiting carbon emissions.

China Prioritizes Short-Term Energy Security: Implications for Sino-Middle East Relations

Although global energy demand fell in 2020 due to the pandemic, investment in energy transition increased. In April, the International Renewable Energy Agency (IRENA) reported that renewable energy’s share of new generating capacity rose substantially for the second year in a row. China, which has emerged as the indisputable leader of renewable energy expansion worldwide, has begun to reorient its overseas energy investment and finance towards non-fossil fuels projects. This shift could portend a larger role for China in the MENA region’s growing renewables sector, especially in solar power production. 

Sustainable momentum? China and the mideast solar market

Hydrogen (H2) is gaining increasing recognition as a key contributor to the global energy transition. The International Energy Agency (IEA) has described hydrogen as a “versatile energy carrier” that could play a significant role in decarbonising the global economy across a range of sectors. Meanwhile, governments and energy companies alike are placing large wagers on hydrogen in efforts to lower greenhouse gas emissions.

John Calabrese

John Calabrese

Japan looks to the Gulf as it bets big on hydrogen

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