Triumphant Energy Exchange: Highlights from the 3rd Annual U.S.-Japan Dialogue on Energy Security

The United States and Japan conducted the third annual U.S.-Japan Energy Security Dialogue (ESD) on December 12 in Tokyo, Japan. Japanese Director General KIHARA Shinichi from the Ministry of Economy, Trade and Industry and Director General KATAHIRA Satoshi from the Ministry of Foreign Affairs’ Economic Affairs Bureau engaged with U.S. Department of State Assistant Secretary for Energy Resources Geoffrey PYATT to explore ways to enhance cooperation in fortifying energy security, expediting the clean energy transition, and diversifying supply chains for critical minerals and clean energy technologies.

Since October 2022, Ukraine’s energy infrastructure has been a primary target of Russia’s violent military assaults. Since March 2024, Russia has intensified these attacks, inflicting considerable harm to Ukraine’s power generation capabilities and further jeopardizing the access of the Ukrainian population to essential services. Japan and the United States reiterated their steadfast support for Ukraine in the wake of Russia’s unlawful invasion and its ruthless attacks on Ukraine and its energy systems.

The United States and Japan acknowledged the necessity to closely monitor the effects on global energy markets stemming from current geopolitical events, such as Russia’s aggression towards Ukraine and conditions in the Middle East, underlining the significance of a stable energy market and their commitment to being crucial energy partners. The Department of State and Department of Energy reaffirmed their dedication to bolstering Japan’s energy security, which includes the United States’ capability to consistently supply liquefied natural gas (LNG) while collaborating with other fossil energy importers and producers to minimize methane and carbon emissions throughout the fossil energy value chain, and hastening the transition to net-zero emissions globally by 2050.

Japan and the United States reiterated their dedication to realizing the Global Methane Pledge (GMP), recognizing the necessity for a robust collaboration between fossil fuel producers and consumers. Both nations aspire to reduce methane and CO2 emissions emanating from the fossil energy sector, expressing approval for the outcomes of the LNG Producer-Consumer Conference 2024 (LNGPCC2024) held in Hiroshima, Japan on October 6, 2024, and indicating the significance of expanding the CLEAN (Coalition for LNG Emission Abatement toward Net-zero) initiative and the CLEAN Annual Report 2024, noted as the world’s inaugural methane data disclosure by project.

The United States and Japan recognized the climate crisis as a fundamental challenge of our time and committed to leading the global response with a focus on the simultaneous achievement of net-zero, economic advancement, and energy security, while exploring various pathways. Through Japan’s GX Promotion Act and the U.S. Inflation Reduction Act along with the Bipartisan Infrastructure Law, both countries are propelling the decarbonization of their economies, fostering economic growth and job creation, enhancing industrial competitiveness, and reinforcing energy security by increasing the development and deployment of clean energy technologies, along with establishing more diverse clean energy and critical minerals supply chains. Japan and the United States reaffirmed their efforts to optimize the synergies between these landmark investments and promote complementary, resilient clean energy supply chains.

The two nations highlighted the importance of facilitating increased private sector investment by leveraging private sector demand for clean energy via the Clean Energy Demand Initiative (CEDI). The United States welcomed ongoing collaboration with Japan in the Indo-Pacific to further the goals of CEDI to boost investment in clean energy and options for the private sector to acquire it, aiding U.S. and Japanese businesses in the region to satisfy their growing demand for clean power while contributing to economic growth. The rising energy demand from AI presents new opportunities for clean energy deployment, including nuclear energy, which reinforces supply capacity and energy security in the digital era.

Japan and the United States commit to collaborating on energy supply chains and expedite the deployment of clean energy technologies. Both nations will join forces to promote innovative technologies such as floating offshore wind, clean hydrogen and its derivatives like ammonia, e-fuels and e-methane, carbon capture and storage/recycling, alongside advanced nuclear reactors including small modular reactors (SMRs), to enhance access to secure supplies of clean energy.

Japan and the United States reaffirmed their commitment to pursue cooperation on critical minerals initiatives through the Minerals Security Partnership (MSP) to establish diversified and resilient supply chains that bolster economic and energy security. Both countries recognized robust supply chain connections for numerous critical minerals, including links between Japanese midstream enterprises and processed parts manufacturers, and U.S. end-user companies. Japan endorsed U.S. commitments aimed at bolstering supply chain resilience against potential misuse of export control measures on critical minerals that could harm our collective economic and national security. The United States and Japan reiterated their commitment to maintain and expand responsible bilateral and global trade, especially in e-scrap to enhance the recycling of critical minerals and foster circular economies.

Japan and the United States acknowledged the Japan-U.S. Mekong Power Partnership (JUMPP) as a significant mechanism for advancing their shared vision of a secure and sustainable energy future in the Mekong region. Over the five years of JUMPP, both partners have made meaningful progress towards clean energy integration and regional interconnectivity in Cambodia, Lao People’s Democratic Republic, Thailand, and Vietnam through vital contributions to technical analysis, market development, and renewable energy integration. Japan and the United States are pleased to share the JUMPP Accomplishments Report, which highlights all the regulatory advancements, increased clean energy capacity, and technology deployments over five years of this collaboration.

Both parties acknowledged the substantial rise in demand for reliable, clean electricity due to the growing global interest in artificial intelligence and other emerging technologies and welcomed enhanced civil nuclear cooperation in third markets to satisfy those demands. This includes collaboration under the U.S. Department of State’s Foundational Infrastructure for the Responsible Use of Small Modular Reactor Technology (FIRST) Program, to support capacity enhancement, feasibility assessments, and preliminary engineering efforts for the deployment of nuclear energy adhering to the highest standards of nuclear safety, security, and non-proliferation as aligned with IAEA standards and guidance in the Indo-Pacific region and beyond.

Japan and the United States confirmed the immense value of this Energy Security Dialogue along with the productive track 1.5 component, and anticipate reconvening at a senior level in 2025.

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