Why Japan?
Why seek opportunities in Japan?
Here are 5 reasons for Nordic climate tech startups to look into Japan:
1. Commitment to Sustainability: Roadmap to Carbon Neutrality by 2050
Japan has a target to achieve carbon neutrality by 2050, and the government is taking initiatives to cultivate sustainability and green innovation across industries.
The GX (Green Transformation) Promotion Act, enacted in May 2023 stipulates that it will require 150 trillion JPY (approx. 1 trillion USD) in investments from public and private sectors over the next decade to decarbonize the society. The government initiated the investment by issuing the GX Economic Transition Bonds of approximately 20 trillion yen.
2. Green Transition as Economic Growth - METI’s initiatives
The green transformation is recognized not only as a social responsibility but as a significant trigger for economic recovery and enhancing global competitiveness.
The Green Innovation Fund, initiated by the Minister of Economy, Trade, and Industry (METI) allocates 2.3 trillion yen (approx. 16 billion USD) to support companies working within the following 14 significant areas of potential economic growth.
3. Transitioning the Energy Mix
The majority of the energy supply in Japan still originates from fossil fuels whereas the Nordics have been increasing the portion of renewable sources. This gap is a potential for Nordic green energy solutions to play a role in Japan’s energy mix transition.
For Japan, the energy transition is also an opportunity to increase its energy self-sufficiency rate. Currently, Japan depends on imports for over 85% of its energy resources.
4. Rich in Technology: Leading Number of Patents in the Climate Tech Field
Japan is home to a significant number of patents related to Climate Tech. Collaborating with Japanese companies can provide Nordic startups with opportunities to enhance their own technologies and business development.
5. Increasing investment from Japan to the Nordics
Finally, investments from Japan to Nordic climate tech solutions are on the rise.
Below are some of the cases within the last few years. Japanese trading companies and manufacturing companies are seeking strategic partnerships with startups and scaleups that provide synergies within their existing business fields.
