Japan is preparing to temporarily relax restrictions on coal-fired power generation as the conflict in the Middle East continues to disrupt energy markets and raise concerns over fuel security.
The move, confirmed by Japan’s Ministry of Economy, Trade and Industry, is intended as an emergency measure to reduce pressure on liquefied natural gas imports at a time when supply routes have come under strain. Tokyo plans to ease the rules for one year from 1 April 2026, in response to uncertainty over LNG shipments linked to the closure of the Strait of Hormuz during the ongoing U.S.-Israel war with Iran.
The decision marks a notable, if explicitly temporary, shift in Japanese energy policy. In recent years Japan has sought to curb emissions by limiting the use of older and less efficient coal-fired plants, while also maintaining a formal commitment to long-term decarbonisation. The present crisis, however, has forced the government to prioritise security of supply over emissions targets in the short term.
The government wants to suspend the current cap on coal plant utilisation in order to cut LNG consumption by about 500,000 metric tonnes. That would amount to more than 10 per cent of the volume Japan normally imports through the Strait of Hormuz, one of the world’s most strategically important energy chokepoints. Around 6 per cent of Japan’s LNG imports pass through the strait, making the country especially vulnerable to prolonged disruption there.
The measure underlines the structural dilemma facing Japan’s energy planners. The country remains heavily dependent on imported fossil fuels, a vulnerability exposed repeatedly by geopolitical shocks. Since the Fukushima nuclear disaster in 2011, Japan has struggled to balance energy security, climate commitments and the political constraints surrounding nuclear restarts. Although some reactors have returned to service, the nuclear fleet remains far below its pre-Fukushima level. 15 of Japan’s 33 operable reactors have now resumed operations.
That still leaves thermal power, including coal and gas, carrying much of the burden of electricity generation. In normal circumstances, the Japanese government has been trying to phase down reliance on coal, particularly the least efficient plants. The latest decision does not reverse that policy in principle, but it does show how quickly climate-related restrictions can be reconsidered when supply risks intensify.
Prime Minister Sanae Takaichi’s government has already taken other emergency steps in response to the energy shock. Reuters reported earlier this week that Takaichi asked the International Energy Agency to prepare for a further coordinated release of oil stockpiles if the conflict in the Middle East continues. Japan has also moved to provide access to jointly held oil stockpiles and has considered broader contingency planning in case maritime disruption worsens.
The wider geopolitical background is central to the government’s calculations. The Strait of Hormuz has in effect been closed by the conflict, leaving dozens of Japan-related ships stranded in the Gulf. Tokyo has also signalled that, in a ceasefire scenario, it could consider minesweeping operations in the area because of the waterway’s direct importance to Japanese energy security.
For Japan, the coal decision is therefore less about changing its strategic direction than about buying time. Officials have presented it as an emergency response designed to preserve gas reserves and stabilise electricity supply during a period of acute uncertainty. Japan currently holds an LNG stockpile of about 4 million tonnes, while also deploying fuel subsidies and supply diversification measures.
Even so, the policy will attract scrutiny from both environmental groups and energy analysts. Coal remains the most carbon-intensive major fuel used in power generation, and any increase in its use is difficult to reconcile with Japan’s stated climate ambitions. The government appears to be betting that the temporary nature of the measure, limited to one year, will contain political damage while allowing the country to navigate an immediate supply threat.
The episode illustrates a broader reality confronting industrial economies: in a period of war, disrupted shipping lanes and unstable fuel markets, energy transition plans can quickly collide with strategic necessity. Japan has not abandoned its decarbonisation agenda. But for now, with LNG supplies at risk and the Middle East conflict entering its fourth week, Tokyo is making clear that keeping the lights on comes first.
