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Wednesday, 29 August 2012 - Japan leans toward zero nuclear stance, caution remains |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Breakingviews Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Video Reuters TV Reuters News Article Comments (0) Pictures Editor's choice Our best photos from the last 24 hours.  Slideshow  Follow Reuters Facebook Twitter RSS YouTube Read Hurricane bears down on fortified New Orleans on Katrina's anniversary | 4:14am EDT Analysis: China's aircraft carrier: in name only | 28 Aug 2012 Republicans launch convention assault on Obama | 1:55am EDT "Galley slave" Putin savors yachts, planes, palaces, critics say 28 Aug 2012 Actress Lindsay Lohan not charged in theft from California home 28 Aug 2012 Discussed 138 Obama’s lead over Romney grows despite voters’ pessimism 122 Romney to announce vice presidential choice Saturday 94 Analysis: Are Israelis tough enough for a long war with Iran? Sponsored Links Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography.  See more | Photo caption  Republican women Sarah Palin, Condoleezza Rice and Michelle Bachmann are some of the prominent GOP women supporters.  Slideshow  Hurricane Katrina A look back at the tragedy that was Hurricane Katrina.  Slideshow  Japan leans toward zero nuclear stance, caution remains Tweet Share this Email Print Related News Big radiation risk unlikely if Israel strikes Iran: experts Tue, Aug 28 2012 Don't drop ball on nuclear safety: IAEA chief Mon, Aug 27 2012 IAEA gets no deal with Iran on bomb research suspicions Fri, Aug 24 2012 U.N. nuclear watchdog pushes Iran to open up military site Fri, Aug 24 2012 Japan tough but wary on South Korea row; debt plan, fx deal on line Fri, Aug 24 2012 Analysis & Opinion Essential reading: Attack targets Romney’s role in Marriott tax deals, and more Essential reading: Watchdog says U.S. IRS allows bogus taxpayer IDs, and more Related Topics World » By Linda Sieg TOKYO | Wed Aug 29, 2012 4:32am EDT TOKYO (Reuters) - Japan's government, wary of public opinion ahead of an election, is leaning toward setting a target to eliminate atomic power by 2030 - a major policy shift for an economy that had planned to boost the role of nuclear energy before the Fukushima crisis. Prime Minister Yoshihiko Noda is expected to call a snap election within months and with his Democratic Party's (DPJ) ratings sagging, pressure is mounting to respond to a growing grass-roots anti-nuclear movement and surveys showing that most voters want to abandon atomic energy eventually. Such a decision would fly in the face of objections from big business lobbies, which say an aggressive programme to exit nuclear power will boost electricity rates and force companies to move production - and jobs - overseas. "I think the zero by 2030 scenario is becoming mainstream (in the government)," said DPJ lawmaker Satoshi Arai, a former minister and a member of a panel thrashing out the party's stance ahead of the election for parliament's lower house. "I think it is (because of) the election," he told Reuters in an interview on Wednesday. In contrast to polls of ordinary voters, a Reuters survey of big Japanese firms showed that while one in five backed the zero option, the rest of respondents supported a continued role for nuclear energy. But some economists say a policy shift would spell opportunities for growth, both for companies now positioning themselves to profit from the change and the economy overall. "A sustained focus on energy technology improvement should be very positive for certain sectors or producers but also very positive for users, who need increased incentives to use energy more efficiently," said Robert Feldman, chief economist at Morgan Stanley MUFG Securities in Tokyo. Feldman rejected suggestions that an abrupt policy change would prompt firms to move overseas "because it takes a static view of technology. Why would technology stop in its tracks?" The earthquake and tsunami that crippled the Fukushima power plant and caused a series of meltdowns prompted cancellation of a 2010 plan to raise the share of nuclear power in electricity production to more than 50 percent by 2030 from nearly 30 percent. All 50 of Japan's reactors were halted within months of the accident, with two since reconnected to the grid. Policymakers are now considering three options for the future of the sector. PARTY DIVIDED Most experts had expected Noda to opt for a scenario that would put nuclear power's share at around 15 percent of electricity production by 2030. But growing anti-nuclear protests combined with strong support for the zero option at public hearings and in opinion polls has forced the government to rethink, experts and politicians said. "A majority of people are eager to get rid of nuclear power - that is our conclusion after we discussed a variety of public opinions submitted to the government this time," Economics Minister Motohisa Furukawa told reporters on Tuesday. Besides the zero and 15 percent options, a third scenario would put nuclear power's share at 20-25 percent by 2030. The earthquake and tsunami devastated Tokyo Electric Power Co's Fukushima Daiichi nuclear plant north of Tokyo and forced about 160,000 people to flee their homes, many of whom may never return. The disaster undermined public confidence in nuclear power, promoted for decades as safe, clean and cheap. Noda's decision to approve the restart of the two reactors galvanized the anti-nuclear movement. But Noda's party is split and the prime minister seems reluctant to wean Japan from nuclear power too soon. "There are many people who say different things and no one can say whether the government will choose zero or 15 percent at this point," said a source with knowledge of the debate. Some experts still expect the government to pick the 15 percent scenario, the logical outcome if reactors are shut after 40 years as required "in principle" by law, and no new reactors are built. It could, however, add that Japan will aim to exit atomic energy longer term, a stance the main opposition Liberal Democratic Party may also adopt in its own campaign platform. "While the Noda Administration ... (is) openly talking about a zero nuclear policy, we believe this is simply not doable. A 15 percent nuclear policy will likely be adopted after all the protests and arguments," said a report by energy consultants FACTS Global Energy. Demand for liquefied natural gas in Japan, the world's biggest consumer of the fuel, will rise further to run power stations as renewable sources such as solar and wind power would not fill the gap fast enough, the report said. Arai, who favors the 15 percent solution, echoed the concerns. "If we move faster, technological and system development and huge changes in society will be needed," he said. "I don't think that is possible in 15-20 years." (Additional reporting by Kentaro Hamada and Aaron Sheldrick in Tokyo; Editing by Ron Popeski) World Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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