Tokyo, 11 July 2025: ERIA and the Institute of Energy Economics, Japan (IEEJ), co-hosted a series of stakeholder meetings in Omaezaki City, Shizuoka Prefecture (9 July) and Tokyo (11 July) to explore the critical role of nuclear energy in local economic development and green transformation.

The meetings were held against the backdrop of Japan’s recently adopted Green Transformation (GX) policy, which promotes the establishment of energy-intensive industries in regions with local electricity generation capacity. The discussions brought together a diverse group of experts from Japan, the United States, Finland, the United Kingdom, and ASEAN countries. ERIA and IEEJ were represented by Dr Venkatachalam Anbumozhi and Mr Tatsuya Terazawa, respectively.

Participants exchanged views on revitalising regional economies in nuclear-hosting communities, focusing not only on conventional subsidies but also on strategic measures to attract industries and academic institutions, thereby improving public acceptance of nuclear energy.

Key Policy Proposals and Insights

1. Economic Integration and Local Benefits
   Successful siting of nuclear facilities depends on clear economic benefits that contribute to regional growth and public welfare. Utilities must operate as ‘good neighbours,’ engaging meaningfully with host communities. A vital measure is ensuring that high-skilled, well-paying jobs directly benefit local residents. Establishing higher education institutions – potentially within science and technology parks – was recommended to build a sustainable local talent pool and reduce population outflow.
2. Attracting Energy-Intensive Industries
   The attraction of energy-intensive industries is central to the GX policy and is equally relevant for ASEAN countries exploring nuclear power. Stable and reliable nuclear energy offers strong potential for powering data centres and advanced manufacturing. Stakeholders encouraged governments and utilities to proactively plan for the energy needs and infrastructure requirements of such industries.
3. Innovative Financing Models
   Participants highlighted the need for innovative financing frameworks to enhance industrial engagement. Finland’s Mankala model, which allows industries to invest in nuclear power generation in exchange for electricity at cost, was presented as a potential model for Japan and ASEAN. Such user-driven frameworks could significantly improve the economic appeal of nuclear projects.
4. Reframing Nuclear Energy as Clean Energy
   Amid growing international recognition of nuclear power as a clean energy source, participants stressed the importance of broadening this conversation across the ASEAN region. Promoting nuclear energy as part of global decarbonisation efforts could increase public awareness and acceptance.
5. Creating Stable Investment Environments
   The success of large-scale energy projects hinges on stable, long-term policies. Both local governments and private sector investors require predictability and regulatory clarity. Governments in Japan and ASEAN must create investment environments that inspire confidence and support long-term capital commitments.

These discussions reinforced the multifaceted potential of nuclear energy as a driver for sustainable regional development. The shared insights and proposed policy frameworks support Japan’s GX ambitions while offering valuable guidance for ASEAN Member States considering nuclear energy in their future energy strategies.