Japan is a nation of around 123 million people, with most of its population clustered around major cities like Tokyo, the largest urban center in the world. With a significant manufacturing base, this island nation has, in recent years, started to move away from polluting fossil fuels, embracing alternative green technologies.
Image Credit: Norikazu/Shutterstock.com
This article will explore the current landscape of green and sustainable technologies in Japan, looking at the history of this transition as well as some key players, policy frameworks, and challenges, opportunities, and future outlooks.
Overview and Historical Context of Japan’s Cleantech Sector
The cleantech sector in Japan incorporates many technologies such as renewable energy generation, energy storage, smart energy management tools, waste-to-energy, recycling, hydrogen and alternative fuels, and energy-efficient transportation and logistics technologies.1
Sustainability and mitigating the impact of climate change have become the biggest drivers of the green transition in Japan, much like in other nations, and the nation aims to become carbon neutral by 2050. This has led to a rise in environmental research expenses in Japan, and protecting the environment in Japan has become a key concern for the government, industry, and Japanese society.
Japan's nuclear energy sector
Since the middle of the 20th century, Japan's nuclear energy sector has become one of the nation's dominant electricity suppliers. However, the 2011 Fukushima incident exposed the risks associated with nuclear power.
Fukushima disaster zone. Image Credit: Santiherllor/Shutterstock.com
The subsequent shutdown of the nuclear sector in Japan in the months following Fukushima meant that Japan became considerably more dependent on energy imports, leading to a contracted trade balance for the government. The need for a more diversified energy portfolio became apparent to the Japanese government, leading to changes in the country’s energy strategy and the embrace of cleaner tech.1
Fukushima's nuclear emergency - by Nature Video
Video Credit: nature video/YouTube.com
Current Landscape and Japan's Environmental Issues
Japan has emerged as an innovative world leader in cleantech and sustainability in recent decades as it embraces the green transition and emerging technologies. Japan’s environmental issues, such as carbon emissions, air pollution, growing waste streams from rapid urbanization, and marine plastic pollution, have spurred this move away from traditionally environmentally damaging technologies and practices.
Key innovations such as artificial intelligence (AI) and automation have helped cut pollution and manufacturing waste, helping to overcome some of Japan's most pressing environmental issues. The nation is also a world leader in hybrid car technology, hydrogen technologies, and bioplastics production.2
Japan’s commitment to sustainability can be seen in the actions of its government and industry. For instance, Japan has earmarked $36.8 Million to help four Pacific Island nations and their green transition. The government has unveiled a five-year, 1 trillion Yen plan to spur new ventures in the cleantech field.3
Key Players and Current Innovations in Japanese Cleantech
Key players in Japan’s air pollution solutions, renewable energy sector, smart cities revolution, automation solutions, and other areas of cleantech and sustainability include the government, large multinational corporations, and innovative startups.
Hitachi Energy, part of one of the most recognizable Japanese corporations, is working with international partners to aid the transition from highly polluting fossil fuels to clean electricity generation.4 The company specializes in creating large-scale infrastructure for transporting renewable electricity from where it is generated to where it is consumed.
Several multinational corporations are also driving the green transition in the Japanese manufacturing sector. Siemens, for instance, has utilized sensors, IoT technologies, and AI to reduce carbon emissions by 54% through more efficient energy management.
General Motors is transitioning toward landfill-free manufacturing, waste management systems, and renewable energy.2
Nippon Steel is also investing in green steel. The company plans to use carbon capture and storage technologies to test hydrogen direct reduction in blast and electric arc furnaces. Nippon Steel aims to use 100% hydrogen direct reduction by 2050.
Another major steel manufacturer, Kobe Steel, has used hot briquetted iron as a feedstock in blast furnaces to significantly reduce their CO2 footprint, producing “Kobenable Steel”. The company also aims to use green hydrogen in specific products.5
Other Japanese cleantech companies include Challengergy, which is developing a new wind turbine that can better operate in extreme climate conditions, and NABLA Mobility, a startup that aims to help decarbonize the aviation industry.
Government Policies Affecting Japan’s Green Trajectory
Government support, funding, and policies are key to the green energy transition in every nation. Overcoming environmental issues in Japan and accelerating the green transition require the coordinated efforts of industry and government.
Japan’s government has announced several policies affecting the Japanese cleantech sector in recent years. Indeed, sustainability and environmental issues are key drivers of Japan’s current economic plans.
June 2023 saw the Japanese government update the “Grand Design and Action Plan for a New Form of Capitalism.” This plan sets out the criteria for future economic growth in the country. Climate tech is referenced in the plan’s startup promotion chapter, demonstrating cleantech's importance in the Japanese economy and energy transition.3
The aforementioned 1 Trillion Yen (approx. $6.4 billion) in funding earmarked for the government's five-year plan for encouraging new cleantech ventures also underscores sustainability's vital role in Japan. Moreover, the government is encouraging entrepreneurs by easing visa restrictions, amongst other actions.3
Challenges, Opportunities, and Future Outlook of Japan's Cleantech Industry
Japan’s cleantech industry is still in its relative infancy, but several opportunities exist alongside persistent challenges in this area for the nation. Japan’s historical reliance on resource imports such as energy creates a challenging landscape for the overall energy transition, but more renewable energy should help to alleviate this problem.
The Fukushima Incident demonstrated the dangers of an undiversified energy mix. In recent years, fossil fuels have increased in Japan's energy mix. Rapidly moving toward renewables should not come at a cost to the Japanese population's living standards. Japan’s cleantech transition should consider the UN’s Sustainable Development Goals (SDGs).
Japan is also a world leader in hybrid vehicle technology, but many consumers worldwide are opting increasingly for full-electric vehicles, meaning that the Japanese automotive industry may fall behind international rivals if it does not embrace this technology.
However, Japan’s status as a global powerhouse for AI, automation, and related digital technologies could bring the economy huge benefits in the future as other nations increasingly leverage these innovative technologies in their own green transitions. Government policies around these technologies will impact this economic sector.
Conclusion
The Japanese cleantech sector has a highly promising future. Government funding and initiatives support innovation in areas such as AI, automation, hydrogen fuels, renewable energy, and nuclear fusion, underscoring the importance placed on sustainability and a diversified energy mix in Japan.
Environmental problems in Japan and solutions to them will require significant funding over the next decades and innovation in multiple fields. While highly challenging, the outlook is positive.
References and Further Reading
- Berre, M (2015) Sector Mapping and Industry Landscape of the Cleantech Industry in Japan [online] SSRN. Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4954939 (Accessed on 18 January 2025)
- Barot, P (2024) Sustainable Solutions: Japan’s Innovation in Green Technology [online] tntra. Available at: https://www.tntra.io/blog/sustainable-solutions-japans-innovations-in-green-technology/ (Accessed on 18 January 2025)
- Japan NRG (2023) Japan’s Climate Tech: Govt Plans Indicate Growth Potential [online] Available at: https://japan-nrg.com/deepdive/japans-climate-tech-govt-plans-indicate-growth-potential/ (Accessed on 18 January 2025)
- Mills, M (2024) Powering the Future: Hitachi Energy’s Sustainable Grid Vision [online] UNC Institute for the Environment. Available at: https://ie.unc.edu/cleantech-story/powering-the-future-hitachi-energys-sustainable-grid-vision/ (Accessed on 18 January 2025)
- OCBC (2024) The green tech series: Japan developing its green tech industry [online] Available at: https://www.ocbc.com/personal-banking/articles/the-green-tech-series-japan-developing-its-green-tech-industry.page (Accessed on 18 January 2025)
Disclaimer: The views expressed here are those of the author expressed in their private capacity and do not necessarily represent the views of AZoM.com Limited T/A AZoNetwork the owner and operator of this website. This disclaimer forms part of the Terms and conditions of use of this website.