Japan’s state funds for the energy transformation look set to get bigger and more numerous in the coming months as Prime Minister Kishida’s drive for a more active government role filters into policy.
The PM’s Clean Energy Strategy is due to be published this summer. Its early outlines and ministry announcements, as well as media leaks, suggest a surge in national spending to levels that, as METI describes it, “have no past comparison.” Japan needs to invest ¥150 trillion ($1.2 trillion) in decarbonization over the coming decade in order to meet its 2050 net-zero goals, according to METI.
The funds will flow through various channels and ministries, such as the MoE, which is finally setting up its own state corporation to direct financing towards clean energy and power conservation initiatives.
When Japan made its initial net-zero pledge in late 2020, a frequent criticism was how little government finance was set aside specifically for this task. Now, Kishida is set to turn on the taps in a big way.