Japan plans to set up a decarbonisation fund this autumn to support local governments

2022-06-14 0 By

According to Kyodo News on February 8, the Japanese government finalized an amendment to the Global Warming Countermeasures And Promotion Act at a cabinet meeting on February 8, which included the creation of public and private funds to provide financial support for decarbonization projects.The fund is scheduled to be set up around autumn 2022 and aims to advance the government’s goal of a decarbonised society by 2050.The total project cost is expected to reach 100 billion yen, including 20 billion yen (about 1.1 billion yuan) in financial investment loans and private funds.It also obliges the central government to provide financial support to local governments that actively decarbonise.As part of the work of the new fund, the “decarbonization Support Agency” will provide financing, loans and debt guarantees for decarbonization projects, according to the amendment.The revised bill also lists the dispatch of experts with experience in introducing renewable energy facilities and the provision of advice and information to promote projects flexibly.The fund runs until the end of 2050.Organizations will decide on projects based on government-mandated criteria such as environmental concerns and profitability.The protection of forests that absorb greenhouse gases, introduction of renewable energy such as solar and wind power, and recycling of used plastics are also expected to be selected.