Recent revisions to Japan’s law on energy efficient buildings are expected to boost efforts to cut energy use, which in turn will create new opportunities to adopt better technologies and introduce innovative business models.

The law changes come amid rising gas and electricity prices that so far have no end in sight. Given the hardship consumers currently face, homeowners and tenants have a strong incentive to use energy more efficiently.

In total, buildings account for about 30% of Japan’s energy consumption. Therefore, efforts started years ago to target and decrease the sector’s emissions. For example, it has been mandatory for new construction or renovations of non-residential buildings of mid- and large-size to meet energy efficiency standards.

The impact of energy conservation could be as great as switching much of the power generation system away from fossil fuels. So, the incentives for Japan to make progress in the housing sector is significant.