![]() ![]() When asked why they do not invest further, corporate executives typically answer: “There are no promising investment opportunities.” The newly adopted goal of nearly halving greenhouse gas emissions by fiscal 2030 is expected to provide new investment opportunities for Japanese companies. It is obvious that no society can grow without robust investment, and the obvious has happened in Japan. The consequence has been the stagnation of secular demand coupled with little growth in social capital stock and no outstanding technological innovation. As a result, Japanese companies have had no choice but to sit on snowballing retained earnings and be less active in investment. With its economy remaining stagnant, many corporations have found investment opportunities to be few and far between. In Japan, both demand and supply have been in a slump for the past 30 years. ![]() If this happens, massive investment will be stimulated on the demand side while technological innovation is accelerated on the supply side. Great investment opportunities will emerge along with moves to develop electrified vehicles, utilize renewable energy as a major power source and build full-fledged hydrogen-based fuel supply networks, among other efforts. To that end, they want climate-related investment to be a growth opportunity instead of merely the burdensome cost of protecting the environment. Governments in many countries, including Japan, aim to convert their climate change efforts into a growth strategy. Against this background, steady corporate efforts to lower emissions are particularly vital. However, it is hard to expect breakthrough technologies for stopping climate change to become available in just nine years. Japan will have to realize large emission reductions in the coming nine years. We have 29 years to go until 2050, but 2030 is only nine years away. Japan announced a bold goal, pledging to cut emissions to 46% below fiscal 2013 by fiscal 2030. The United States convened a virtual Leaders Summit on Climate in April, with the world’s attention focused on the participating countries’ 2030 decarbonization targets. move has also been giving impetus to other countries’ climate change commitments. Many businesses have accordingly announced climate change measures of their own.Ī recent U.S. Japan’s efforts to curb climate change have been gathering speed since October 2020, when Prime Minister Yoshihide Suga declared a goal of achieving “net-zero” greenhouse gas emissions by 2050. By Motoshige Itoh / Special to The Yomiuri Shimbun ![]()
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