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Messages from Keidanren Executives and Contributed articles to Keidanren Journals June, 2026 "Energy Strategy in Action: Driving Technological Progress and Human Development"

Shunichi KITO Vice Chair of the Board of Councillors, keidanren
Representative Director and Chairman, Idemitsu Kosan Co., Ltd.

Geopolitical risks are rising worldwide, including heightened tensions in the Middle East centered on Iran, while policy environments in many countries are becoming increasingly volatile. As a result, the environment surrounding Japan's energy sector is facing unprecedented uncertainty.  Under these circumstances, Japan must ensure its energy security and maintain a stable supply while steadily advancing Green Transformation (GX) toward achieving carbon neutrality by 2050—an ambitious task that requires balancing these goals simultaneously.

To this end, Japan must pursue a multilayered approach that combines both "energy transition" and "energy addition." While ensuring a stable supply of existing energy sources, it is essential to steadily expand new sources of supply such as renewable energy and next-generation fuels. In particular, liquid and solid fuels offer high energy density, portability, and storability, making them irreplaceable in times of crisis. Therefore, it is important to develop a realistic pathway that enables their continued use while advancing their low-carbonization and decarbonization.

From a long-term perspective, advancing GX will contribute to improving Japan's energy self-sufficiency, without being swayed by short-term fluctuations in international prices or policy trends. Advancing GX in areas where Japan excels—such as high-efficiency manufacturing technologies, chemistry and materials, and combustion and safety engineering—will generate significant added value through the development of highly skilled engineers. The experience of engineers taking on challenges in the field, learning from failure, and continuously evolving forms the core of human capital development. The cumulative growth of both technology and people will enhance not only Japan's energy industry but also the competitiveness of its manufacturing sector as a whole, ultimately reinforcing its presence in the international community.

In this era of uncertainty, we must build energy strategies grounded in a resilient long-term vision and steadily take meaningful steps toward sustainable prosperity for society as a whole.

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