Abstract

Japan's coal policy is at the crossroads; coal continues to be one of the most reliable and economically efficient energy sources and yet its preeminent position is being threatened by an increasingly acute environmental awareness. Under such circumstances, where shall we situate coal in our energy policy?To answer these questions, "C3" or "Clean Coal Cycle Study Group", answerable to the Director of the Coal Division, issued the interim report on Japan's New Coal Policy in June 2004.This paper describes the outline of the report and introduces the concrete measures to secure stable coal supply while tackling the global warming issues.Below are the key points. • It is very important to use coal to a certain extent from the perspective of diversifying energy sources. Besides, how to overcome its disadvantages and to maintain/strengthen/make the best use of its advantages is the key to position coal as more influential energy source. • The largest disadvantage of coal, its environmental load can be overcome by clean coal technologies (CCTs). What must be achieved is, (A) the improvement on thermal efficiency through coal gasification in short-term, (B) the realization of zero-emission by CO2 sequestration in long-term. • For making contribution to the global environmental issues while stimulating domestic economy, it is important to balance environmental protection and economic growth by disseminating CCTs made in Japan into Asian countries on commercial basis through utilizing Kyoto mechanism. • In order to secure stable supply at lower prices, the largest advantage of coal in mid- to long-term, where demand of coal in Asia is expected to increase from now on, it is necessary to expand the supply potential of coal-producing countries, and/or to strengthen the relationship between those countries. • Under the recognition above-mentioned, it is vital to carry out the "C3 Initiative"

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