Introduction

Amundi released the first paper in its ‘Responsible Investment Pulse’ series on Japan's Green Transformation (GX), a bold plan to accelerate Asia's transition to clean energy. 

Launched in 2023 and updated as GX 2040 Vision, Japan’s strategy promotes private sector involvement through a public-private partnership model, reducing political risks. 

With $1 trillion in investment, it rivals major US and EU climate initiatives. Substantial tailwinds are expected for clean energy solutions in Japan and across Asia. Investors can play a key role in this transformation by seizing opportunities related to economic growth in clean energy and energy-efficient industrial activities, as well as new financial mechanisms such as Transition Bonds.

Key takeaways

  1. The GX strategy aligns climate, energy, and industrial policies with three main goals:
    1. Achieve Net Zero commitment by 2050 per in accordance with its NDC.
    2. Promote economic growth while enhancing bolstering Japan’s industrial competitiveness.
    3. Ensure stable energy supply.
       
  2. The GX strategy supports transition finance through:
    1. “Bold” proactive investments using the proceeds from GX Economy Transition Bonds.
    2. “Growth-oriented » carbon pricing.
    3. New financial support schemes from the GX Promotion Agency.
       
  3. Strong growth is expected for clean energy in Japan and Asia.

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Discover how “Japan Green Transformation Plan" drives clean energy, AI growth, and regional decarbonization, offering opportunities to investors.