Building Japan’s Impact Economy Case Series

2025 pledges to reduce fossil fuel financing. However, the plan lacks concrete measures, and leaves the country vulnerable to further environmental degradation and continued reliance on unsustainable energy sources. 33 The 2011 Fukushima nuclear power plant disaster pushed Japan away from nuclear power and instead was the catalyst for Japan to increase its fossil fuel usage, a practice that currently generates 70 percent of its electricity. 34 However, with the worldwide urgency to pivot away from fossil fuels and invest in cleaner alternatives, as well as domestic and international goals to reach net zero by 2050, Japan is reassessing nuclear energy as part of its future energy mix. 35 Climate Change—Health, Biodiversity, Food, Clean Air and Water Connection As a nation highly vulnerable to natural disasters, Japan faces significant risks from climate change that directly impact personal and environmental security. According to the Japan Meteorological Agency, the annual average air temperature and average surface temperature near Japan hit the record high since the statistics began in 1898. 36 Rising global temperatures are expected to cause sea levels to increase by as much as 6.4 meters. In Osaka alone, 5.2 million people would be affected, inundating key business districts like Namba and Umeda. 37 A 3°C rise in global temperatures could affect 46 percent of Japan’s population and nearly half of its industrial output. 38 Such shifts pose not only economic but also human security threats, displacing millions of people and destabilizing local economies. Urbanization further amplifies the impacts of climate change. By 2050, nearly 95 percent of Japan’s population will live in cities, with more than half concentrated in Tokyo and Osaka. 39 These urban centers are particularly vulnerable to rising temperatures and extreme heatwaves. 40 In July 2024, more than 120 people died and 37,000 people were treated for heatstroke across Japan—an indicator of the rising health risks linked to climate change. 41 As heatwaves become more frequent and intense, public health infrastructure will be stretched thin, further threatening the well-being of urban populations. Japan’s natural environment is also at risk, with nearly 70 percent of the country covered in forests that serve as vital carbon sinks. 42 It has high levels of endemic species—60 percent of its reptiles and 80 percent of its amphibians are found nowhere else in the world. 43 However, rising temperatures, habitat loss, and increased natural disasters threaten these ecosystems and the biodiversity they support. The preservation of Japan’s biodiversity is not just an ecological imperative but also a critical component of human

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Ten Years in the Making

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