Japan Approves $780 Billion Budget for Green Transformation and Energy Modernization
The Japanese government has approved a draft budget of JPY122.31 trillion ($780 billion) for the fiscal year starting April 1, 2026, focusing on green transformation (GX). The budget aims to modernize the energy grid and enhance resource independence.
A significant portion, JPY605 billion ($3.8 billion), is allocated through the Ministry of Economy, Trade and Industry (METI) for GX and renewable energy projects, supporting Japan's 2050 carbon-neutrality goal. Key allocations include JPY84 billion ($536 million) for energy-saving upgrades in manufacturing and JPY36.3 billion ($231 million) for clean fuel adoption.
METI also earmarked JPY49.7 billion ($317 million) for perovskite solar cell production and JPY12.2 billion ($77.8 million) for offshore wind exploration. Additionally, JPY2.1 trillion is designated for regional decarbonisation initiatives.
The budget includes JPY122 billion ($778 million) for experimental nuclear reactors and increased subsidies for municipalities. It supports carbon management projects and addresses human-wildlife conflicts, crucial for achieving emission reduction targets of 46% by 2030 and 73% by 2040.
