Japan Approves $780 Billion Budget for Green Transformation and Energy Modernization
Japan's government has approved a JPY122.31 trillion ($780 billion) budget for the fiscal year beginning April 1, 2026, aimed at advancing green transformation and energy modernization. Key allocations include JPY605 billion for renewable energy projects and significant funding for energy-saving upgrades, clean fuel adoption, and regional decarbonization initiatives, all supporting Japan's goal of achieving carbon neutrality by 2050. The budget also includes investments in experimental nuclear reactors and carbon management projects to meet ambitious emission reduction targets.
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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.
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