7 BETTING ON HYDROGEN: JAPAN’S GREEN INDUSTRIAL POLICY …
159
government. In April 2014, the Council proposed the new policy of transitioning to a hydrogen society and proceeded to create a more concrete
plan for the sector (Behling 2014; Behling et al. 2015, pp. 212–213). 9
The new Road Map was divided into three phases. The first phase
called for the promotion of two product lines, the FCEV and the residential ENE-FARMS, where Japan was already a world leader, and provided
subsidies over a period of 10 years to help the industry develop products and infrastructure. The second phase of the Road Map was the
more abstract and longer-term goal of establishing a worldwide hydrogen
“supply chain.” This stage focused on “hydrogen production, storage,
and transport capabilities,” and indicated that this phase would begin
in earnest only in 2020. The third phase outlined the abstract goal of
establishing a zero-carbon emission energy economy based on “green
hydrogen.” The roadmap indicated that this phase would take place
around 2040, with the goal of creating a “completely CO 2 -free, low-cost,
safe, and stable hydrogen supply infrastructure” at some point thereafter.
The Road Map thus covered a period of over 25 years and provided a
commitment of funding for the entire period. Of greatest impact was the
immediate increase in spending, with METI requesting US$401 million
for FY 2015, which represented a doubling of the prior year’s budget.
The plan envisioned the creation of a new market for hydrogen and fuel
cells that would increase from US$10 billion in 2030 to US$80 billion by
2050. The Road Map did not mention any employment numbers, but the
assumption is that this will be a major job creator (Behling 2015, p. 4).
The Road Map was announced with great fanfare, with numerous
Japanese political leaders expressing optimism that the plan would
work. Abe, for instance, argued that “the key to acting against climate
change without sacrificing economic growth is the development of
innovative technologies” such as the hydrogen society. Then Tokyo
governor Masuzoe Y¯ oichi added that “the 1964 Tokyo Olympics left the
Shinkansen high-speed train system as a legacy. The upcoming Olympics
will leave a hydrogen society as its legacy” (Daugherty 2016, p. 1).
Explaining Japan’s Policy Change
This section discusses Japan’s unexpected shift to support the hydrogen
and fuel cell industry. Given the numerous technical obstacles and
unclear commercial prospects, why did the Japanese government decide
to gamble on the hydrogen society? What gave the Japanese government
159
government. In April 2014, the Council proposed the new policy of transitioning to a hydrogen society and proceeded to create a more concrete
plan for the sector (Behling 2014; Behling et al. 2015, pp. 212–213). 9
The new Road Map was divided into three phases. The first phase
called for the promotion of two product lines, the FCEV and the residential ENE-FARMS, where Japan was already a world leader, and provided
subsidies over a period of 10 years to help the industry develop products and infrastructure. The second phase of the Road Map was the
more abstract and longer-term goal of establishing a worldwide hydrogen
“supply chain.” This stage focused on “hydrogen production, storage,
and transport capabilities,” and indicated that this phase would begin
in earnest only in 2020. The third phase outlined the abstract goal of
establishing a zero-carbon emission energy economy based on “green
hydrogen.” The roadmap indicated that this phase would take place
around 2040, with the goal of creating a “completely CO 2 -free, low-cost,
safe, and stable hydrogen supply infrastructure” at some point thereafter.
The Road Map thus covered a period of over 25 years and provided a
commitment of funding for the entire period. Of greatest impact was the
immediate increase in spending, with METI requesting US$401 million
for FY 2015, which represented a doubling of the prior year’s budget.
The plan envisioned the creation of a new market for hydrogen and fuel
cells that would increase from US$10 billion in 2030 to US$80 billion by
2050. The Road Map did not mention any employment numbers, but the
assumption is that this will be a major job creator (Behling 2015, p. 4).
The Road Map was announced with great fanfare, with numerous
Japanese political leaders expressing optimism that the plan would
work. Abe, for instance, argued that “the key to acting against climate
change without sacrificing economic growth is the development of
innovative technologies” such as the hydrogen society. Then Tokyo
governor Masuzoe Y¯ oichi added that “the 1964 Tokyo Olympics left the
Shinkansen high-speed train system as a legacy. The upcoming Olympics
will leave a hydrogen society as its legacy” (Daugherty 2016, p. 1).
Explaining Japan’s Policy Change
This section discusses Japan’s unexpected shift to support the hydrogen
and fuel cell industry. Given the numerous technical obstacles and
unclear commercial prospects, why did the Japanese government decide
to gamble on the hydrogen society? What gave the Japanese government