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Dec. /2025
(Overview Reports)
Overview Report: Environment and Energy Field
Executive Summary

In recent years, efforts to realize a sustainable society have faced stagnation or setbacks due to a complex interplay of external factors. These factors can be broadly categorized into geopolitical and socioeconomic dimensions. Geopolitically, certain countries--including the United States--have temporarily distanced themselves from international cooperation due to domestic political shifts and changes in leadership. Additionally, escalating conflicts in various regions have severely impacted energy supply and resource distribution. On the socioeconomic front, rising energy prices and global inflation are placing increasing pressure on economic activities and daily life. Furthermore, the global outbreak of COVID-19 has exposed vulnerabilities in social systems and highlighted the instability of supply chains. The convergence of these factors has made the transition toward a sustainable society increasingly challenging. Moving forward, the international community faces the critical question of how to achieve carbon neutrality while ensuring stable energy supply and economic resilience.

In the energy sector, growing international uncertainty has underscored the need to promote diverse technological development from a technology-neutral perspective. A key challenge is the constructing integrated systems that organically link individual technologies and facilitate their implementation in society.

In Japan's power supply landscape, the deployment of renewable energy sources such as solar and wind power, alongside the use of nuclear energy as a base load source, has contributed to improving energy self-sufficiency. Solar power development is advancing through high-efficiency cells, next-generation batteries, and expanded installation sites. Wind power is evolving with larger-scale turbines and floating technologies.

As renewables become mainstream, thermal power generation using hydrogen and ammonia is gaining attention as a clean technology that emits no CO2. Its ability to flexibly adjust output in response to power demand positions it as a stabilizing element in the overall energy mix. Meanwhile, the rapid advancement of AI has created new challenges in securing power for data centers. To accommodate the increasing adoption of decentralized and variable power sources, new systems that enhance power supply-demand balancing are essential. Energy storage technologies--both short- and long-term--are expected to play a central role. In sectors where decarbonization is particularly difficult, such as industry and transportation, the development of synthesis and utilization technologies for clean fuels (e.g., hydrogen, ammonia, synthetic fuels, biofuels) is progressing with cost considerations in mind. For residual CO2 emissions, technologies such as CCS (Carbon Capture and Storage) and nature-based negative emission approaches are under development.

In the environmental field, addressing global-scale challenges requires multifaceted technological innovation and integrated efforts. Advancements in observation and prediction technologies are enabling more sophisticated assessments of climate change impacts and the development of adaptation strategies, supported by AI and integrated modeling. Monitoring and management of water, air, and soil are increasingly focused on emerging pollutants such as PFAS, with progress in AI/IoT-based monitoring and environmental risk assessment. Nature-based Solutions (NbS), which leverage natural purification functions and ecosystem services, are gaining recognition as sustainable countermeasures. In resource circulation, beyond the advancement of recycling technologies for plastics and metals, integrated approaches that encompass material design through recycling processes are being emphasized. Additionally, the concept of "resource creation"--which redefines unused resources and by-product energy (e.g., urban mines, rare metals in wastewater, atmospheric CO2, waste heat from factories and water treatment facilities)--is attracting attention as a promising approach to simultaneously enhance resource efficiency and reduce environmental impact.

As the transition toward a sustainable society accelerates, one of the most pressing challenges in both technological development and policy design is how to effectively manage the uncertainties inherent in this process. Achieving carbon neutrality by 2050 will require not only the advancement of innovative technologies but also their seamless integration into society through adaptable systems and regulatory frameworks. To address these uncertainties, research and development efforts must be strategically structured around three key pillars: (1) Promotion of the transition, which involves driving the development and deployment of technologies that enable decarbonization and resource efficiency; (2) Monitoring, forecasting, and evaluating the progress of the transition to ensure efforts remain on track and responsive to changing conditions; and (3) Preparing for stagnation or adverse impacts, which entails anticipating potential setbacks--such as delays in technology adoption, imbalances in energy supply and demand, or the emergence of ethical, legal, and social challenges--and developing resilient systems capable of mitigating these risks. Multiple pathways toward carbon neutrality are envisioned, each reflecting varying degrees of technological maturity and societal uptake. These pathways must remain flexible to accommodate shifts in international dynamics and domestic priorities. At the same time, the transition process may involve complex, interrelated risks that require integrated approaches--such as securing alternative solutions, stabilizing energy systems, and enhancing resilience across sectors.

Ultimately, research and development in the environment and energy domains will play a central role in shaping a carbon-neutral future. To ensure that a sustainable society and a healthy global environment are passed on to future generations, it is imperative to accelerate both technological innovation and its implementation on a broad scale.

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