The Green Transformation Market is Thriving in Japan

In 2020, the Japanese government launched the Green Growth Strategy with the aim of achieving carbon neutrality by 2050. One important means of accelerating toward this goal is the establishment of the Green Innovation Fund with a total value of 2.75 trillion yen (approx. 17.8 billion USD). The fund provides up to 10 years of support for companies committed to ambitious targets shared by the public and private sectors. Across the country, Green Transformation (GX) efforts focused on sustainable environmental protection and economic growth are thriving. A powerful example of this transformation is unfolding on the Goto Islands, far from Tokyo, showcasing both innovative social changes and emerging business opportunities.

Goto City is located on the Goto Islands, about 100 km west of Kyushu's main island in southwestern Japan. Since it being selected for a government offshore wind power generation experiment in 2010, GX efforts have progressed remarkably here, and today it's Japan's most advanced area in terms of clean energy generation and consumption.

At present, nearly 60% of the city's electricity demand is met through renewable energy, significantly higher than the national average of 12.8%. Once the new offshore wind power farm currently under construction begins operation, its self-sufficiency rate will surpass 80%.

Green transformation has proven to be a powerful catalyst for social change. Goto City's Yuki Kawaguchi says, "The creation of jobs related to floating offshore wind power generation has led to an increase in our population. This is quite a rare phenomenon for a remote regional city." He details that the benefits GX has brought to the local community include increased tax revenue and new opportunities for students to study abroad.

Seishi Kiyotaki, President of Fukue Chamber of Commerce and Industry in Goto City, hopes that the progress of GX will advance the local economy. "As a society, I believe we've reached a point where companies that don't work to prevent global warming won't be able to survive," he says.

According to Kiyotaki, the most important thing to preserve a good environment for future generations is to view "through the lens of economic effect." He details, "Human exchange is flourishing here, naturally leading to the introduction of capital. We are seeing positive results creating a virtuous cycle for the economy."

Headquartered in Goto City, E-Wind is a company involved in the offshore wind power generation. Today, it's grown into a leading company in wind turbine maintenance across Japan. To support their 24-hour monitoring operations, the company has also established a base in Brazil, allowing them to take advantage of the 12-hour time difference and stay active around the clock.

Hideto Tanoue of E-Wind says, "Becoming involved in the maintenance of wind turbines prompted us to completely pivot our business from construction to wind power maintenance."

He continues, "Countries abroad are often more advanced in terms of maintenance systems and technology. Moving forward, we need to keep an open mind when it comes to incorporating their technology into our operations. We've already expanded our business to provide support and training to Japanese companies focused on wind power maintenance and inspection."

Advancing developments of green transformation are creating new businesses, even in remote islands where economies were traditionally centered on the fishing industry.

If you are interested in finding green transformation business opportunities across Japan, talk to JETRO first! We have our offices not only around the world but also across all of Japan. Thanks to our strong presence rooted in local communities, we can provide you with the latest information, alongside many support services for investment in Japan.