From Our Chairman & CEO

Message from Chairman

　The Institute of Energy Economics, Japan, has now reached its 60th anniversary. This milestone was made possible thanks entirely to the generous support of our member　companies, relevant ministries and agencies, and many others. We extend our heartfelt gratitude to them.

　In many ways, the 60-year history of our institute is the history of energy itself. At the time of its establishment, our research focused primarily on oil. Following the first oil crisis in 1973, and in tandem with Japan’s strong push toward energy diversification, our institute significantly expanded its scope to include LNG, coal, and nuclear energy, while also emphasizing energy efficiency. Since then, we have broadened our research areas further to encompass new energy sources, such as renewable energy. In recent years, we have expanded to include hydrogen, CCS, energy market reform, and critical minerals. We now cover virtually all aspects of energy.

　Following the adoption of the Kyoto Protocol in 1997, our institute has strengthened its efforts to address climate change issues. We have extensively researched areas such as international negotiations on cross-border carbon credit trading, support for emissions trading market design, and lifecycle-based carbon footprint analysis. Today, research on climate change issues has become our second pillar.

　The third pillar is geopolitics. In 2005, our institute merged with the Japanese Institute of Middle Eastern Economies (JIME), which had been established in 1974 in response to the lessons of the first oil crisis. Given the strong connection between energy issues and the Middle East, this integration was a very significant step. Since then, we have expanded our analysis to include not only the Middle East, but also the United States, Europe, Russia, China, India, and ASEAN. This expansion has made geopolitical research another key pillar of our work.

　Our institute has thus developed three core pillars: energy, climate change, and geopolitics. Very few think tanks in the world cover such a broad scope with a dedicated department for quantitative analysis. On February 28, the United States and Israel attacked Iran, causing unprecedented disruption to the global energy supply by closing the Strait of Hormuz and attacking the energy facilities in the Gulf region. Accurately analyzing this crisis and presenting future outlooks is now more important than ever. Furthermore, given the vulnerabilities exposed by this situation, strengthening energy security has become an urgent priority. As an institute integrating energy and geopolitics, we recognize the critical role we must fulfill at this time.

　Meanwhile, global warming continues to intensify year after year, making the gap between ambition and reality more apparent. It is essential to acknowledge this gap and develop policies that are ambitious yet practical to bridge it. As an institute with expertise in both energy and climate change issues, we are committed to making the fullest possible contribution.

　As the challenges surrounding energy, climate change, and geopolitics continue to evolve, our institute will further strengthen its contributions to these important issues. We thank you very much for your continued support. We look forward to working with you in the years ahead.

Tatsuya Terazawa
Chairman and CEO
The Institute of Energy Economics, Japan
June 2026