[Tokyo19thArchyde.com]–Prime Minister Fumio Kishida pointed out at a meeting of experts on clean energy strategies on the 19th that the public and private sectors need to invest more than 150 trillion yen in the decarbonization field in at least 10 years. He estimated that the amount of government support required would be 20 trillion yen, and said that he would raise it in advance with GX (Green Transition) economic transition bonds.
Prime Minister Kishida said, “The environment surrounding energy security has changed completely due to Russia’s invasion of Ukraine,” and emphasized the need for “a shift from a fossil fuel-centered society to a carbon-free society.”
To attract private investment as a government, he said, “We will provide a roadmap for the next 10 years for comprehensive investment such as market design, government support, financial framework, and infrastructure development.”
The prime minister said, “In order to stimulate huge private investment over multiple years, instead of repeating the conventional main budget and supplementary budget every year, the government will raise support funds in advance and show its commitment.”
Furthermore, with emissions trading in mind, “while embodying the growth-oriented carbon pricing concept, we will raise (issue) GX economic transition bonds in advance of the necessary government support funds, which is said to be 20 trillion yen. And will promptly send it to investment support. “
According to Ministry of Economy, Trade and Industry officials, the GX economic transition bond is a tentative name, and we will discuss the specific mechanism and the required amount at the GX executive meeting to be set up this summer. In the world, a big competition for the superiority of up-front investors has begun, and the government will consider procuring and supporting it in advance, with the awareness that it will lose if it does not provide prompt support.