The strategy, which provides a roadmap for achieving goals in different sectors, projects a 30-50% increase in electricity demand and calls for a boost to triple renewable energy in the country’s energy matrix to about 50-60% current level, while also maximizing the use of nuclear energy as a clean and stable energy source.
But it is unclear whether Suga has the political weight to overcome vested interests in removing Japan, resource-poor, from its dependence on imported oil and gas.
The strategy identified 14 industries, such as offshore wind, hydrogen and ammonia fuel, as well as automobiles and rechargeable batteries and a roadmap for each sector. The strategy shows an offshore wind installation target of up to 45 gigawatts by 2040.
According to the strategy, the government will also provide tax incentives and other support to stimulate investment in green technology, and projected annual growth of 90 trillion yen ($ 870 billion) through 2030 and 190 trillion yen ($ 1.8 trillion) until 2050.
The government will offer tax incentives and other financial support to companies, such as a 2 trillion yen ($ 19 billion) green fund.