Press Conference by Minister Saito (Excerpt)

*Note: This is a provisional translation for reference purposes only.

11:02 to 11:18 a.m.
Tuesday, June 25, 2024
Press Conference Room, METI Main Building

Opening Remarks

Reorganization of the Ministry of Economy, Trade and Industry

First, today, a cabinet decision was made on a Cabinet Order to Partially Amend the Cabinet Order for Organization of the Ministry of Economy, Trade and industry (METI). This strengthens the system to promote priority policy measures related to economic security, innovation, and Green Transformation (GX), among other matters.

Specifically, the Trade and Economic Cooperation Bureau has been reorganized as the Trade and Economic Security Bureau, while the Industrial Science, Technology and Environment Policy Bureau has been reorganized as the Innovation and Environmental Bureau. In addition, the GX Group has been newly established.

For detailed information on the specifics of the amendment, please inquire with the administrative staff.

Visit to Akita

Third, this Saturday, June 29, I will visit Akita City, Akita Prefecture and inspect an offshore wind power generation facility that I have wanted to take a look at.
As the government regards offshore wind power generation as the key to maximizing the introduction capacity of renewable energy, it has so far created projects worth approximately 5.1 gigawatts based on the Act on Promoting the Utilization of Sea Areas for the Development of Marine Renewable Energy Power Generation Facilities. Of that capacity, projects in Akita Prefecture account for two gigawatts.

On June 11, an offshore Akita project was adopted for a large-scale demonstration concerning floating offshore wind power to be financed by the Green Innovation Fund.
In this way, Akita Prefecture is an advanced area for offshore wind power that leads Japan, so I have long wanted to conduct an onsite inspection. On that day, I also plan to exchange opinions with the governor and local businesspeople about the initiatives that the prefecture is promoting in order to realize wind power in harmony with the local communities.

The subsidy program for labor-saving investments by SMEs

Lastly, let us move on to the fourth point. Today, we will start accepting applications for the catalogue-based subsidy program for labor saving investments by small and medium-sized enterprises (SMEs). It supports investments for labor saving by SMEs struggling with labor shortages. This is a simple and effective system under which labor-saving eligible products are selected from the catalogue. As of today, 90 products in 14 categories have been registered, and we will gradually increase the number of eligible products going forward. I hope that business operators struggling with labor shortages will use this system.

Regarding detailed information, please inquire with the administrative staff.
I will end my remarks here.

Question-and-Answer Session

CCS

Q: Regarding your recent visit to Hokkaido to inspect a Carbon Dioxide Capture and Storage (CCS) project, the project aims to realize practical use by 2030. On the other hand, it is important to create an environment that does not encourage dependence on subsidies. Therefore, discussion is now underway on carbon credits. Please tell me about your thoughts on a specific schedule such as when you would like to introduce carbon credits.

A: In the United States and Europe, various measures to support the launch of CCS projects, including budgetary and tax system measures, have been developed in recent years, and predictability regarding businesses essential for business entry has been improving.

In Japan as well, in order to launch CCS projects by 2030, it is necessary for business operators to make earnings projections and make investment decisions by 2026. To that end, we would like to quickly conduct a study on a support system that enables smooth business entry and operation while looking at foreign support measures, such as budgetary measures, tax system measures, and credits.

We are already conducting support activities, such as a business feasibility study, through advanced CCS projects. We will also conduct a study on the use of GX Economy Transition Bonds and the J-Credit Scheme in light of the results of the advanced CCS support projects.