Japan to focus on green growth in bid to boost economic recovery

The Japanese government approved a new growth strategy this week and confirmed it will put green growth at the centre of plans to revive the country's flagging economy.

With the aim to deliver on new growth targets, the government is promising an increased focus on sectors including renewable energy, green vehicles, agriculture and healthcare.

The strategy predicts Japan can create more than $600 billion by 2020, delivering up to 1.4 million new jobs.

It also sets a target of ensuring half of all new cars sold by 2020 are either zero-emission electric, fuel cell vehicles or highly fuel-efficient hybrids, and pledges to secure 50% of the global market for rechargeable batteries by the same year.

The government recently approved subsidies for renewable energy projects that are expected to drive a surge in green investment.

A government committee is currently looking at a series of options for the country's future energy mix, ranging from reducing the role of nuclear power – from 30% currently to around 25% – through to completely phasing it out.

Economists also warned that if the country is to return to 3% a year GDP growth, it will have to engineer a means of boosting exports, particularly in high-growth sectors such as clean technologies.

The move comes as anti-nuclear campaigners this week unveiled Japan's first Green Party, outlining plans to become an official political party by the country's next election in 2013.

The 1,000-member party said it would offer voters an alternative to the ruling Democratic Party and opposition Liberal Democratic Party, both of which approved the restarting of two nuclear reactors earlier this year and are perceived to be rowing back on initial plans to phase out the use of nuclear power post-Fukushima.

 

 

Image 01 - Sakata wind farm. contri.