As a country lacking in energy resources，Japan’s coal supply is highly dependent on imports. Japan has not implemented a progressive abandonment policy in order to meet domestic demand for coal since the announcement of the “Carbon-neutral and Carbon-peak” policy. Instead，it is committed to striking a balance between reducing greenhouse gas emissions and ensuring the security of the energy supply chain. In essence，Japan pursues a “fade-out” policy that emphasizes de-carbonization but not de-coal. Meanwhile，Japan is working hard to reduce the carbon emissions of coal power through highly efficient combustion technology，multi-fuel firing technology，and CCUS，and to spread these improved technologies to other developing countries. However，to achieving a transition from carbon peak to carbon neutrality，Japan must address both technological and institutional issues. Japan is exploring a “just transition” path towards carbon neutrality to promote the sustainable development of the country’s economy and society.