IAS Gyan

Daily News Analysis

Japan adopts green growth plan to go carbon free by 2050

27th December, 2020 Environment

Context: The programme calls for auto industries to go carbon free by the mid-2030s.

  • Japan aims to eliminate gasoline-powered vehicles in about 15 years.
  • The government has a plan to achieve ambitious pledge to go carbon free by 2050 and generate nearly $2 trillion growth in green business and investment.
  • The “green growth strategy" urges utilities to bolster renewables and hydrogen while calling for auto industries to go carbon free by the mid-2030s.
  • The strategy, provides a roadmap to achieving the goals in different sectors, projected 30-50% increase in electricity demand and called for a push to triple renewables in the country’s energy mix to about 50-60% from the current level, while also maximising use of nuclear power as a stable, clean source of energy.
  • The strategy identified 14 industries, such as offshore wind, hydrogen and fuel ammonia as well as autos and rechargeable batteries and roadmap for each sector.
  • The strategy shows an installation target for offshore wind power of up to 45 gigawatts by 2040.
  • Under the strategy, the government is also to provide tax incentives and other support to encourage investment into green technology, and projected an annual growth of 90 trillion yen ($870 billion) by 2030 and 190 trillion yen ($1.8 trillion) by 2050.
  • The government will offer tax incentives and other financial support to companies, such as a 2 trillion yen ($19 billion) green fund.