Japan Commits $415 Million to Boost Green-Tech Startups

Japan’s Environment Ministry is allocating ¥60 billion ($415 million) to support the commercialization of domestic climate and environmental technologies through the Japan Green Investment Corp. for Carbon Neutrality. The government-backed fund aims to foster innovations in fields ranging from aquaculture to flood prevention, with a focus on reducing emissions.

“We realized that it’s difficult to tackle climate issues without tapping into the innovation, creativity, and free thinking of startups,” said State Minister of the Environment Fumiaki Kobayashi.

The initiative includes seed funding for startups and plans to promote successful ventures in overseas markets. Additionally, the government may act as a consumer of these technologies, accelerating their development. The ministry is collaborating with agencies such as the Government Pension Investment Fund to channel more investment into green-tech firms.

While Kobayashi acknowledged the ¥60 billion may fall short of what's needed, he emphasized the significant impact the government can have by adopting these technologies. “The ministry’s budget may be small, but Japan’s role as a consumer of innovation can be huge,” he said.

Japan, which still depends heavily on fossil fuels, has struggled to transition to cleaner energy. In February, it pledged to cut greenhouse gas emissions 60% by 2035 from 2013 levels—an effort seen by some as insufficient to meet global climate goals.

The new program encourages collaboration between startups and major corporations and offers up to ¥500 million ($3.46 million) in investments to eligible companies. Kobayashi hopes climate-tech firms will eventually represent 10% of Japan's unicorn startups, aligning with a broader national goal of creating 100,000 startups and 100 unicorns by 2027.

Source: japantimes.co.jp