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December FY2023
“Sector-specific Investment Strategies” Compiled as Effort for Specifying Investment Promotion Measures for the Realization of GX

“Sector-specific Investment Strategies” Compiled as Effort for Specifying Investment Promotion Measures for the Realization of GX

December 22, 2023

In order to simultaneously achieve the three goals of decarbonization, economic growth, and a stable energy supply through GX (green transformation), the Government of Japan compiled “Sector-specific Investment Strategies” for ten years in the prioritized fields as an effort for improving companies’ predictability and strongly encouraging companies to invest in GX.

1. Background

In February 2023, the Cabinet decided to approve the Basic Policy for the Realization of GX (and, in July 2023, it also decided to approve The Strategy for Promoting Structural Transition based on Decarbonization (GX Promotion Strategy)). As a reference to the basic policy, the Government of Japan presented “Future milestones” in 22 sectors in order to show not only its commitments to be undertaken over the long term and several fiscal years but also prospects for regulatory and institutional measures. In light of this, the Government of Japan largely categorized the Future milestones, and based on this, established the Working Group of Experts for the Realization of GX to hold discussions by prioritized field, and compiled discussion results into “Sector-specific Investment Strategies” as part of the efforts by the GX Implementation Council.

2. Overview

The Sector-specific Investment Strategies focus on the “Investment Promotion Measures taking advantage of GX Economy Transition Bonds and present basic principles and policies for specifying the measures, approaches to commitments required for businesses subject to support measures, and basic approaches to execution principles and other rules. The strategies also show a compilation of future directions of GX and measures for promoting investment in the 16 sectors below. Going forward, Japan will implement the strategies, thereby encouraging GX investment in the prioritized fields and accelerating the implementation of GX in Japan.

Sixteen prioritized fields

Steel, Chemicals, Paper and Pulp, Cement, Automobiles, Batteries, Aircraft, Sustainable Aviation Fuel (SAF), Ships, Life-related Industry, Resource Circulation, Semiconductors, Hydrogen and its derivatives, Next-Generation Renewable Energy (Solar Power, Offshore Wind Power), Nuclear Power (Next-Generation Advanced Reactors), and CCS