Legislating to Promote Renewable Energy Deployment - A
comparative review of law & policy in Australia and Japan
James Prest, PhD
Lecturer, Australian Centre for Environmental Law
College of Law, Australian National University
Canberra, Australia1
ABSTRACT
A comparative review of developments over the past decade in the field of renewable
energy (RE) law and policy in Australia and Japan reveals some remarkable similarities.
Both countries have adopted legislation that mandated Renewable Portfolio Standards
(RPS) as a primary tool of support for renewable energy. These laws set a required
minimum of energy that must be generated from renewable sources. Further, both
countries until very recently have set targets for RE deployment which are, by
international standards, rather unambitious (at 1.35 to 2%). The countries are also similar
in that both have to date not legislated to introduce the model of RE support which is the
most prevalent worldwide, that of Feed-in Tariffs (or FIT laws). Both countries have
hosted various proposals for FIT laws, but to date, this alternative legislative model has
not yet been enacted in either Australia or Japan.
One marked point of departure between the nations is the considerable extent of direct
support for photovoltaic technology up until recently provided in Japan. In contrast to a
commonly professed Australian aversion to “picking winners”, i.e., providing dedicated
support and subsidy to a particular sector of an industry, a key feature of Japanese policy
between 1993 and 2005 was dedicated subsidies for the solar photovoltaic industry.
Lessons may be at hand for Australia in terms of the beneficial results – extremely rapid
industry growth and spectacular capture of global market share achieved by Japanese
corporations. This example of industry support remains relevant to ongoing debates in
Australia over the interaction between national emissions trading markets with domestic
law and policy providing industry support.
Another primary argument made is that the recent history of renewable energy law and
policy in Australia and Japan suggests that the major barriers to increasing the share of
total electricity production occupied by RE are political and economic, rather than
technical. In terms of Japan, this argument is explored in the context of evidence that the
RPS law did not sufficiently protect wind industry development between 2003-2006,
against self-interested barriers raised by major players within the electricity supply and
distribution industry. The implications of this experience for the promised major
expansion of legal support for RE to 20% targets in Australia are explored - in the context
of possible industry objections that may be raised to expanded operation of the national
RE target. This paper concludes by making comparative reference to the findings of the
1
Contact details: Telephone +61 (2) 6125 1689; email: prestj@law.anu.edu.au
international literature, identifying the key features of national law and policy in
Australia and Japan which have tended to variously support or stall RE development in
each nation during the past decade.
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