Japan to invest $1.34 billion on clean power over next five years

• 12 days ago (2026-01-06)
• David Flin

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Japan has announced it will invest $1.34 billion to encourage companies to use clean electricity, supporting industry and regions that switch to zero carbon power.

The plan will run for five years, starting in fiscal 2026. It is part of Japan’s broader strategy to reduce reliance on fossil fuels and expand clean energy.

The government will give subsidies to companies that commit to using clean power. Eligible companies must use 100 per cent zero carbon electricity and support regional development. The subsidies can cover as much as 50 per cent of the capital costs.

This funding programme fits into Japan’s Green Transformation 2040 Vision, which will connect climate goals with economic growth. Under this strategy, the government and regional partners will create clusters of industry powered by clean electricity. The clusters will receive financial support and tailored regulatory policies.

Japan also plans to increase the role of nuclear power, aiming for it to contribute 20 per cent of electricity by 2040. Renewables are expected to reach around 40-50 per cent, up from the current 26 per cent.