Government’s action plan of the growth strategy – Support for the development of next-generation storage batteries, hydrogen and carbon recycling, etc.
On December 1st, government decided on the action plan of growth strategy for the Post-Corona era at the growth strategy council. For energy and environment sector, the government will provide support for the development of next-generation storage batteries, a large supply of hydrogen and carbon recycling, etc. as national projects towards 2030. The government will provide long-term financial support to private companies after asking for the commitment of target achievement such as cost reduction set by government. In addition, for nuclear power, the government showed the policy that it will construct a sustainable utilization system as a technologically established de-carbonization technology.
The growth strategy council was established by Prime Minister, Yoshihide Suga and it is responsible for the actualization of individual legal system reforms based on the basic policy indicated at the Council on Economic and Fiscal Policy. The action plan determined on the same day of December 1st is regarded as an interim report. In future, they will continue discussions while listening to the opinions of the ruling parties for the final compilation.
For the achivement of carbon neutrality in 2050, “Electrification + Greening of electricity”, “hydrogen” and “Fixation and reuse of CO2”are positioned as three priority areas. In order to rapidly promote technology development, government will establish the fund to provide continuous support over multiple years to companies which can meet government targets. It will be considered to ask those companies who failed to achieve the targets, for returning the subsidy.
Furthermore, the government will arouse corporate investment towards the target of “Substantially zero”. An investment tax cut will be promoted for capital investment for manufacturing products with a certain decarbonizing effect such as lithium-ion batteries and power semiconductors, as well as for the introduction of the latest equipment to significantly improve the energy efficiency of production process. Ministry of Economy, Trade and Industry is expected to submit a related bill in the ordinary Diet session in 2021 after the conclusion of the tax reform in 2021
In addition, regarding hydrogen, automobiles, storage batteries, carbon recycling, off-shore wind power, semiconductors and telecommunications, the related bill includes the direction of the plan for establishment of the system such as target with the clearly defined term, research and development, demonstration and regulatory reform. They will continue to study in the future and will discuss for such plans in the fields of aircrafts, ships, nuclear power, housing and buildings.