In October 2020, the Japanese government declared its ambition to reduce greenhouse gas emissions to net zero by 2050, setting Japan on course to become a carbon-neutral society. The Green Growth Strategy is key to helping Japan achieve this ambitious goal. The aim of this new strategy is to promote green growth to transform industries and the broader economy. The Green Growth Strategy features ambitious goals, includes action plans for sectors with high growth potential and clarifies the resources available to encourage private-sector investment.
The Decarbonization of Electric Power Generation
The full introduction of renewable energy sources, such as offshore wind power, is a prerequisite to the decarbonization of the electricity sector. In the area of thermal power generation, Japan will promote the development of technologies for Carbon Capture, Utilization and Storage (CCUS) and carbon recycling, as well as explore the exciting potential of hydrogen and ammonia as alternative fuels for power generation. As an established decarbonized technology, Japan will continue to utilize nuclear power while reducing its dependency on this power source as much as possible and strengthening safety measures.
A smart decarbonized societyAlongside the transformation of the electricity sector, Japan will promote electrification and hydrogeneration in sectors that are highly dependent on fossil fuels such as transportation and the consumer economy.
The transformation of Japan’s energy sources will require key technologies and strategic investment in several areas. These will include developing an electricity grid that is more accessible for renewable energy, promoting rechargeable battery technologies, and investment in smart electricity systems.
Full mobilization of policy tools
METI will leverage a wide range of policy tools to promote this transformation. Over the next decade, METI plans to provide 2 trillion yen in funds to support companies to develop and deploy the key technologies required for new green growth. Tax incentives will be put in place to support investment in production facilities and processes that contribute to decarbonization. These tax incentives will also support research and development programs for green innovation.
Additionally, METI will help facilitate financing for companies working on decarbonization initiatives as well as leverage regulatory reform and international standardization programs to accelerate the adoption of key technologies.
Moving forward, METI will steadily implement this strategy and action plans while holding deeper discussions to continue to build out this strategy.